Allowance Or Commission?

Growing up, many of us had parents that gave money to us based on one of two theories - the theory of allowance and the theory of commission.

What is the difference? See if either of these sound familiar either for you as a kid or for your children currently.

Allowance - Joe and Jane have certain expectations around the house every week - make their beds, finish their homework, clean their rooms, set the table, sweep the floors or wash dishes. Each week, no matter who does what or how it gets done, each child is "allowed" a certain amount of money every week.

Commission - Jane and Joe have chores to do around the house, and each child is paid a specific amount each time the chore is done, or is paid a set amount if the chore is done every day of the week. The amount given each week changes according to how much work the child does. If certain things don't get done, there is no payment for that work.

Some households do a little bit of each, at least in this way - only certain chores have a commission attached to them, while others don't (and no allowance either) because they are considered part of living in the house and contributing to the everyday management of the household.

Which system did you live through under your parents' roof, and which one are you executing in your own house today? Why did you choose the system you did, and what do you hope to accomplish with it? Feel free to let us know - we are always interested in learning how parents teach their kids about work and money!