Every teen on the planet will cringe in disgust if you ask him to do a chore. They’re just so boring! But truth be told, all parents want their kids to learn some life lessons early on – and what’s a better way than asking them to do some chores?

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What if you associate a small allowance with the chore? Will your teen be tempted? Most likely, yes – that is, if he understands the value of money. He probably got pocket money with no conditions at all when he was a kid – which was great! But as he grows older, this “treat” must transform into something more meaningful. Like earnings for running an errand or doing chores around the house.

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The purpose of an allowance is more than just giving teens financial freedom. They're also opportunities for practice in real-world management skills, with parent guardrails always present so they can make mistakes along the way without getting into serious trouble!

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If you can link allowances to chores, you show your teen the important correlation between effort and gratification.

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In 3 simple steps, you can put your teen on the right track:  

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1.  Set up recurring chores that are easy to complete - like doing the dishes or taking out the trash. Then, assign an allowance to each chore so your teen knows what to expect.

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2. You can gradually add on more chores and increase the allowance amount — it’ll show him how hard work pays off.

3. Help your teen in drawing up a budget by splitting up his earnings into savings, shopping money, investment, and even charity.

With teens, even a monthly allowance might work well. This will teach them to budget their money over a longer period of time.

Choosing what Chores to do

All families are different, which means their chore routines are different too.Chore schedules can start early on with household tasks. Then, add more responsibility as your teen gets older, like paying utility bills or driving his sister to the dance class.

A teen can start with easy tasks like:  

• Cleaning his room
• Taking care of the pet
• Taking out the trash
• Washing the dishes
• Doing the laundry

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Doing chores also raises a teen’s self-esteem – he realizes that not only does his family love him, but it also needs him.  

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Setting up the allowance system

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When it comes to paying an allowance, there’s one thing we can all agree on: It shouldn’t be complicated. Here are a few ways you can pay out your teen’s allowance:

• Flat rate: Pay a consistent allowance that isn’t connected to each chore’s difficulty level.
• Partial payment: Pay a percentage of their allowance based on chore completion.
• All-or-nothing rule: Only pay their allowance if they complete all their chores.

Work hard. Get paid. It’s that simple.

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Here are some points to remember

·  If you do choose to give your kids an allowance for doing chores, make sure you combine it with conversations about money at home. Families that talk money are more likely to have children who feel knowledgeable about managing personal finances.

·  Make sure your teen understands the value of money – what it does and why it’s important. Once you’ve set an amount and frequency for the allowance, be consistent so he can practice planning and budgeting.

·  Let him make mistakes— and talk through the aftermath. Maybe he forgot to take out the trash and left a stinky mess. Or maybe he skipped laundry, and his uniform isn’t clean for game day. It may be hard to watch him make a couple of slip-ups, but it’s better to have a lesson learned while he’s under your roof than when he’s on his own.

Your teen is doing the tough bit, but we made it easy for you. Use the Xare app to pay your teen for the chores he does and stay in the loop to make sure he is keeping up with his end of the deal.

With Xare, you can pay him the allowance but keep the reins in your hands – set spending limits, approve each transaction, monitor his expenses, and cancel his Xare card whenever you think he went off track.  

Don’t forget to have those money convos so he learns to put his hard-earned money to good use.

Voila! What you’ll have soon enough is a fin-lit teen – the Master of his Money.

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