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Wednesday, April 2, 2014

Smart Money Smart Kids-Replacing Allowance with Commission

For ways to raise responsible children check out Dave and @Rachel Cruze's new book!
www.daveramsey.com

Dave Ramsey and his daughter Rachel Cruze wrote a book together that is scheduled to release on April 22! It is really neat to hear different perspectives from each side (the parent and the child) when talking about learning/teaching financial principles. Click below to check out their site.

Smart Money Smart Kids by Dave Ramsey & Rachel Cruze


The first thing they address in the second chapter is to make sure your children know that work is NOT a bad thing! It is something to be proud of. 

Dave says that the word allowance "implies that a child is 'allowed' a certain amount of money just for living and breathing." He thinks it contributes the the entitled attitude that is so common in recent generations.



Rachel says to replace the word allowance with "commission" and teach them from an early age that money comes from working. "Once your kids understand that money comes from work, they won't be able to spend money on a toy without considering how much work went into actually making that money."

They explain that some chores should be done just because you're part of the family, and some are to earn your commission.

Dave and Rachel list many ideas for chores for toddlers to teenagers in chapter 2 of their book, and have offered the first two chapters free to everyone (the book hasn't even come out yet!). 

Click the Smart Money Smart Kids link below and scroll to the bottom to read the first 2 chapters of this book. They are GREAT! 

This week, I am changing my vocabulary and giving "commission" instead of "allowance". They will know exactly why they are (or are not) getting paid. 



Also, please check out my post using Dave's principles to teach our kids to GIVE SAVE SPEND



Smart Money Smart Kids by Dave Ramsey & Rachel Cruze

14 comments:

  1. What a great idea to write a book from two different perspectives. I am not sure I like either allowance or commission and can't quite put my finger on it. It would be great though if each person could agree what words and language worked for them.

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    1. Yeah, you could use whatever language you wanted as long as you instill the importance of work into them!!

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  2. I love these ideas! I pitched my oldest daughter about paying her to write book reviews of YA novels for my blog....she's a huge reader so of course she loved this! I have tried to teach the idea that money comes from work to avoid both my girls having a huge sense of entitlement.

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    1. That is great! Rachel talks about many of the little "businesses" she started when she was a kid. I used to do a lot of little things to earn extra money and it was really fun.

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  3. I'm a big Dave Ramsey fan. Thanks for sharing this new book!

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    1. I love him too! I hope you get a chance to read the 2 chapters they offer!

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  4. This is a great post. I love the focus on commission instead of allowance. I love this concept.

    Hope you'll check out my blog as well! www.simplyaglimpse.blogspot.com

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    1. Thanks for the comment! Loved your take on the book (and your cupcakes with PB frosting looked wonderful)!

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  5. Oh such a great quote about kids thinking money is free! I think it is so true! Thank you for linking up over at TrueAgape.com to share about SMSK!

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    1. Thank YOU! I've been enjoying seeing the book quotes from you pop up on my Pinterest feed! :-)

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  6. Another substitution I like to make for the word "allowance" when needs (vs. wants) are involved is "budget." For example, when the kids get older, I like to put them in charge of their own clothing budget by handing over the agreed upon amount of money and letting them make the purchase decisions. You could call that an "allowance", but that implies entitlement and "wants". It's really learning to manage a budget. P.S. loved your April Fools pranks post.

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    1. That's something I am looking forward to doing with my kids! My mom used to do that when we went out to eat! She would give us a few dollars that we could spend however we wanted, but we got to keep the change. So I would order off the $1 menu, get a water, and maybe eat a snack at home later. I think it taught me to make wise choices and not just get the most "expensive" meal that I was allowed to get!

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  7. We just call it "payday" at our house. The kids talk about getting their payday ($1 for each of their chores they have done for the week). I liked all the quotes you used. I'm on the launch team as well. Feel free to check out my first post at readmeorbust.com.

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    1. That's a good idea too! I like all the background info about Dave on your post (anyone who wants to know more should check it out!)

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