Last Updated on November 20, 2024 by alli
Teaching little girls about the value of money is so important. It can mean the difference between them struggling financially in the future or being financially independent.
As my daughter grows up, I want her to have a healthy relationship with money. I don’t want money to be the cause of stress for her in the future. I want her to know how to budget, save, spend, and set financial goals. Succeeding in these areas means she would be financially independent and would not have to rely on anyone else for support.
Below are two simple things I introduced (when she was 8 years old) that have helped to educate her about the value of money and how to manage it.
1. Start talking about money early
It’s important to start talking to your daughter about money at an early age. Talk to her about how it’s attained and how to use it.
This can be as simple as explaining to her that dad and/or mum are going to work because when you work, you get paid. With that pay, you buy things like food, clothes and all her books and toys etc.
You can also show her the bills that come in. Explain to her the reason you have electricity in the house, and food is because mum or dad has worked hard to pay for it. Kids need to understand these things are not just provided for free.
It’s also important to explain that everything she owns, has been bought for her with money that someone has worked hard for.
We went through a stage where my daughter wasn’t appreciating the things she had been given. If she lost or damaged something, she’d simply say “doesn’t matter, we’ll just get another one”. So we made sure we never went out to purchase a replacement item immediately after she lost or damaged something. She needed to understand everything has value and needs to be looked after and appreciated.
2. Introduce Pocket Money (an allowance)
The second thing we did to give our daughter a better understanding of the value of money was to introduce pocket money. This has been a winner. The reason it has been such a game-changer is (I believe) because of the way we introduced it. Here’s how we did it and some tips to help you along.
Use a Pocket Money Contract
That’s right. We put together a simple little contract and presented her with it. We read through the contract together and made sure she understood how it worked and what was expected of her.
There was no hesitation from her, and she was happy to agree with everything because we were dangling a carrot – MONEY!
She also loved the concept of the contract and that she was expected to sign it with her signature (which she didn’t have but made up on the spot). She felt like a big girl.
If there is one thing I can recommend regarding paying your child an allowance, that would be – to make her earn it! Don’t give her money each week for doing nothing.
Set a precedent for her future. That is to teach her that when she works and does a good job, she gets paid. Introduce a set of age-appropriate tasks that she needs to complete each week in order to receive the money.
Contents of the “Pocket Money Contract.”
Payment amount
Decide on an amount that you will pay your daughter each week. The amount will be different for each household. Some parents like to set the amount by age, that is, a five-year-old receives $5, a six-year-old receives $6 and so on. The amount is up to you.
Pay Day
Choose a day of the week that she will be paid and keep to that day. It will give her something to look forward to and work towards. It also makes it official.
List of tasks
Make a short list of tasks you expect your daughter to complete each week in order for her to receive her pocket money.
The tasks should all be age-appropriate and they will vary from child to child. As an example, we have five-set tasks for our daughter to complete. You don’t need to have as many, you may be happy with 2 or 3. It all depends on your daughter’s age and how much she can comfortably handle.
As an example, my daughter’s tasks are –
- Make my bed every morning.
- Set the dinner table every night.
- Empty the recycling bin when I see it’s full.
- Keep my room tidy.
- Do my homework every day.
From time to time my daughter needs a little nudge or encouragement to complete a task, so all I need to do is remind her of the number of days until she gets paid. “Three days until payday”! It works like a charm every time.
Since my daughter started receiving pocket money, she has been responsible for buying what she wants out of her own savings. She is now more careful and a lot fussier about what she buys. It’s also no surprise that everything she does purchase with her own pocket money is more precious and valuable to her!
Free Money Management Sheets for Little Girls!
If the pocket money contract sounds like something you would like to try, you can download your own copy via the button below. It’s part of a Money Management Pack I created to help mums teach their little girls about value of money.
I asked my daughter (when she was 8) what she has learned about money since we introduced her weekly pocket money. She said:
“Be very careful with it, because it goes really quick”!
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