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Life Doesn't Come With Instructions
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Life Doesn't Come With Instructions: Money Fundamentals · Unit 1, lesson 1 of 18
Allowance, chores and earning
Money does not appear out of nowhere. Every dollar a person has came from somewhere: a job, a business, a gift or money saved earlier. Money that comes in to you is called income. Knowing where your money comes from is the first step to deciding where it goes.
Common ways kids and teens get money
- Allowance: a set amount a family gives on a schedule, such as every week. Some families connect it to chores and some do not.
- Paid chores: extra jobs at home, beyond everyday help, that a family agrees to pay for.
- Gifts: money from relatives or friends for birthdays or holidays.
- Work for others: jobs for neighbors or family friends, like walking a dog or watering plants.
| income | money that comes in to you from any source |
| allowance | money a family gives on a regular schedule |
| earned income | money you get in exchange for work |
| regular income | income you can count on, because it comes on a schedule |
Gifts are nice, but you cannot plan on them. Earned income is money you have more control over. The more reliably you work, the more you can count on it.
Worked example: adding up one month of income (example numbers)- Allowance: $10 a week × 4 weeks = $40.
- Washing the family car twice at $8 each: 2 × $8 = $16.
- Birthday gift from a grandparent: $25, one time only.
- Total for the month: $40 + $16 + $25 = $81.
- Regular income you can plan on next month: $40 + $16 = $56. The gift is a bonus, not a plan.
When you plan, count only money you are fairly sure you will get. Treat gifts and surprise money as a bonus.
Asking to earn money at home
Every family handles money differently. Some give an allowance and some do not, and both are normal. If you would like to earn money at home, ask a parent or guardian at a calm moment, not when they are rushing out the door. Come with a plan.
- Pick a job that is not already expected of you, such as washing windows or weeding the garden.
- Suggest how often you will do it.
- Ask what the job is worth to your family, and listen to their answer.
- Do the job well, on time and without reminders.
Showing that you can be trusted with small jobs is often how you get offered bigger ones.
Practice
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See all six units
- Where money comes from
- Spending wisely
- Saving and goals
- Banking basics
- Staying safe and being generous
- Capstone: my money plan
The Caveat Family Guide to High School is general information, not legal, tax or financial advice. Each college decides admission, aid and how credit counts, and requirements change; check each college's own pages. Examples are examples, not promises. Caveat Academic Services is an independent college preparation company. Students do all of their own work.