20 FAQs about our

1.FIRST OF ALL , WHAT IS A FAMILY ECONOMY?

A family economy is a work and pay system. The best family economies are built by
parents who use their strengths to create it. Each one will and should look different.
The most important thing is to take the money you are already spending on your
children and reroute it through their choices. The goal is to create a safe microcosm
of the real world at home through lots of purposeful opportunities to earn, spend,
save, and give that money.

2. WHY IS A FAMILY ECONOMY IMPORTANT?

Children thrive on responsibility because it leads to control and gratitude. It not only
empowers your child, but it’s also the antidote to entitlement (can I get a hallelu-
jah?). Lots of mini life’s lessons are learned in a loving, supportive environment where
the stakes are low and the timing is perfect. Plus, you get to be the parent that says
yes. “Yes, you can have that! Did you bring your money?”

Don’t be mistaken! A family economy is not just about money. Money becomes the
vehicle for character building and value teaching. Our children are learning work
ethic, self discipline, accountability, honesty, time management, delayed gratifica-
tion, unity, empathy, and on and on.

3. HOW MUCH MAINTENANCE DOES IT TAKE TO KEEP THE ECONOMY

GOING?
Once the family economy is implemented it only takes about 15 minutes per week to
keep it going.

4. HOW OLD SHOULD OUR CHILDREN BE TO START THE FAMILY

ECONOMY?
It’s best to start the economy when your child is about 5 years old. Keep it simple
and add elements as you go. Elementary is the perfect age because they are still
thrilled with adult-like responsibility. Before they are 5, try simple things like quarters
in a jar for tasks accomplished.

5. HOW DO WE INTRODUCE THE ECONOMY TO OUR CHILDREN?

A family meeting is the best place to introduce the economy. Make it special by
having treats and showing how excited you are for them to be a part of something
so neat.
6. WHEN DO YOU DO PAYDAY?
We do the Family Economy Monday through Friday and they are paid on Saturday.

7. DO YOU PAY FOR ALL THE CHORES YOU ASK YOUR CHILDREN TO
DO?
No, the family economy applies to a limited number of things. There are many
things that our children do in our home that they are not paid for, such as Saturday
morning chores and after dinner jobs.

8. IS THE ECONOMY OPTIONAL FOR YOUR CHILDREN?

Yes, it is always optional. I have had children too stressed with life to “come to work”.
They need a sick week. And that’s perfectly fine. I have also had children that age
out of the economy because they have a steadier income elsewhere (babysitting).
We do ask our children to always do their homework and practice piano. Those are
not optional. And if they would like certain privileges (like computer time) they know
they need to complete their zone first.

9. WHAT ARE THE CHORES THAT YOU PAY FOR?

Morning: Make their bed, Clean up breakfast, Get ready for school.
Afternoon: Get ready for the next day, Piano, Homework
Zone: The home is split into 4 sections and each section has a specific daily job.
Bedtime: Brush teeth, put on pajamas, in bed on time

10. WHAT ARE SOME EXAMPLES OF ZONE CHORES?

Front room: sweep the entry way
Kitchen: set the table
Family Room: vacuum
Toy Room: pick up anything out of place
*Be careful that the chore you assign for zones is something that won’t put the
family at a big disadvantage if the child decides not to do the family economy that
week. For example, dishes would not be a good idea. The chore also needs to be
something that the child can complete in 5-10 minutes, no more.
11. HOW DO YOU MAKE SURE THEY ARE ACCOUNTABLE DAY BY DAY?
The beautiful thing about the Family Economy is that it is designed to run in the
back ground, without any nagging or pestering from the parent. It’s a very self-rein-
forcing system. A simple way to give a reminder is “Does anyone need me to check
anything off?”

12. HOW DO YOU DETERMINE HOW MUCH THEY GET PAID?

Our children are paid their age. This works really well because as they age, they are
asked to have more financial responsibility.

The children have a possible of 50 points to earn each week (10 per day). If they get
45 and above they get the full amount. If they get 40-44 they need to memorize a
quote or poem before they can get the full amount. If they get 39 and below they
can still get a dollar for each day that they complete all 10. We do the last one
because we want our children to always feel like they can redeem themselves and
finish strong.

13. WHAT FORM OF PAYMENT DO YOU GIVE?

Because we didn’t want our children losing all of their cash, we add their increase to
a (virtual) checking account balance. They use check registers to keep track of
deposits and withdrawals and write fake checks if they want something at the store.
I then pay for the item with my credit card.
*We have decided to do it this way because we want it to be as real as possible for
our children, including them doing their own math (which we check).

14. WHERE DO YOU GET PRINTABLE CHECKS?

If you go to the site called Activities For Kids and click on “Personalized Print Outs”
and then to “Blank Checks Template” you can download for free customizable
checks.
15. DO YOUR CHILDREN MISS HAVING CASH?
No. They love having their checkbooks. If they ever want cash they can ask for it
instead or they can write a check to cash.

16. HOW DO YOU INCREASE THEIR RESPONSIBILITY AS THEY GET

OLDER?
We ask our children to pay for all of their wants excluding clothing once they turn 5.
This may sound crazy, but remember that the wants of a 5-7 year old are usually very
simple, and truly they love that control! At 8, they pay for half of their clothes, and at
12 they pay for everything (excluding underclothes and family sponsored outings).
Once our children are 13, they open a real checking account with a debit card.

Again, if this is new, it sounds crazy. But I can’t tell you how grateful my children are
for a birthday present of new shoes, how good they are at delayed gratification
because they have to save up for things, and how eager they are to buy something
for someone else because they get how wonderful it feels to give and be given to.

17. HOW DO YOU ENCOURAGE THEM TO PUT MONEY INTO SAVINGS?

We do the 10, 30, 60 rule. 10% goes to charity, 30% to savings, and 60% to check-
ing/spending. They are asked to put AT LEAST 30% into savings but often do more.
The reason being that we pay 10% interest quarterly. Best. Bank. Ever. They under-
stand that savings money is untouchable until they have graduated from high
school.

18. DO YOU HAVE WAYS FOR YOUR CHILDREN TO EARN MORE MONEY?
Not typically. We let them use their amazing talents and skills to come up with ways
on their own. And believe me, their ideas are far better. For example, the girls decid-
ed to organize and run day camps to meet a financial goal, and our oldest daughter
quickly found a regular babysitting job.
19. HOW DO YOU ENCOURAGE THEM TO TAKE OWNERSHIP OF THEIR
ACCOUNTS?
We ask our kids to sit down on payday and do all of the math on paper, ask “the
banker” if it’s correct and then write it all down in their registers. They also have wish
lists that they put in their checkbooks to help them set goals and think things
through when they are at the store.

20. HOW CAN I LEARN MORE ABOUT HOW TO SET UP A FAMILY

ECONOMY?
Be sure to read The Entitlement Trap by Richard and Linda Eyre. In it they do a
beautiful job of teaching why an economy is so important, and give you step by step
help on how to create one in your family.