Kids – A Costly Enterprise

Another line for your budget….kids

There are varying amounts for how much raising a child costs, mitigating factors can include where you live, where you send them to school, how many you have and if they have any specific needs. Most of the studies show that you are looking at more than $250,000 to raise one precious little cherub.


What?! How much?!

Yes, you read that right, one quarter of a million dollars… at least!

Best thing to do is not panic. Once the double line on the stick appears, you do have some time to prepare. But, what if like many people, you have already built a little army? What can you do about these pricey little people?

Put those costly kids to work, I say!

The inevitable debate – pocket money versus allowance

As with varying on opinion on the cost of raising a child, also varies the debate about whether children should receive an allowance or pocket money linked with jobs. I am more the latter.

Your kids are going to cost you a small fortune, right?!

Your kids will also, one day, be out in the big wide world trying to make a life for themselves (if you’re lucky, further studies show that children move out of home later and return to the family home a few times before the age of 30!).

Your kids will need to learn to manage their money, (or parents risk having a house mate for life), right?!

In my view, pocket money, or receiving money in exchange for their working around the house, is a great way to teach them the value of money.


Offspring on the Job

The theory is twofold:

  1. Kids want money to spend on whatever they like, you being a hardworking parent cannot do everything and stay sane.
  2. Teaching your child that you have to work to earn money, can be a good foundation for their future.

Create a list of jobs that need to be done, every day, week or month. Ensure that you make it clear that there are certain jobs that are part of being a household that are not linked with pocket money.

Find age appropriate jobs that each child can do and allocate an amount for that job. How you determine the price or specific jobs will depend on your family. The main point is to give them some responsibilities as a member of the household, as well as extra jobs so they can earn their own money.

* Of course, once the kids are earning money, you MUST teach them how to manage the shiny coins and colourful notes. Teaching your kids the value of saving, and spending smartly, is an essential tool that some adults continue to struggle with *

In a nutshell…

Get your money’s worth from your kids.

They are going to cost you anyway, so this way they receive responsibilities and learn some valuable life lessons in the process.

Jobs get done meaning less housework for you, and the kids get the freedom of having some of their own funds while learning the basics of money.

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