Commission Strategy for Kids
12.9.15 | Finances
It's summertime and the kids are out of school. Keeping them busy often might include a list of chores around the house. Are they looking for a way to earn and save money? Perhaps paying a 'commission' for chores could assist them with that goal:
Consider the following Commission Strategy:
1) Pay commission on defined chores – Define the chores they will get paid for and which ones they will do because they are part of the family. Repetition can build better work habits. That means some of the chores are daily chores like “make the bed,” “sweep the floor,” and “unload and reload the dishwasher.” Assign each chore a dollar amount and total it up at the end of each day. Make it easy by assigning five commissionable chores each day at $.20 per task. So potentially, they can earn a dollar a day.
2) Transfer ownership to them – Clearly mark on a white board what their chores are. Have a “do” and “done” column to note when chores are finished and which ones still need completion. If they do it, they get paid for it…if not, they don’t. This helps them realize that they would not get full pay if they did not complete all of their chores.
3) Every day is Payday! – Immediate rewards (or consequences) of doing all or part of their chores has value. By making Payday at the end of every day, explanation of why a commission wasn't paid is easier to explain. It also helps build an immediate connection between the chores they did and the pay they received that day. It helps create consistency and repetition. Decide where the money will be kept and how it will be used. Talk about the importance of giving and saving.
As you find ways to keep the kids busy this summer, think about teachable moments. The lessons you teach your children as they earn money and learn to spend, save and give will lay the foundation for their lives.