Kiddos at Home

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The Star System – Teach Your Children About Spending vs. Saving

on June 22, 2013

How do you encourage your kids to do their chores AND save money?


My husband had a very creative system when he was growing up. Their family called it the Star Rewards System.

Each of the children was given a list of chores to do that rotated on a weekly basis. When the parents asked them to do their chores and they were done 100%, the child would earn red star. When four red stars were earned, they could exchange it for one gold star. When the child completed all of their chores without being asked, the child would earn one gold star.

Every Friday night, the kids went with the parents to the “store” – a closet full of toys. Each of the toys had one or more stars on them – that was what the prize was worth. The child then had a choice – either cash in their stars for a small prize, or save their stars until they had saved up for something better.

My husband told me that he always saved up for the big toys – a super soaker or a remote control car, while his little brother was always too eager to spend the stars he earned right away! His brother would settle for a bouncy ball or a matchbox car, then get upset when he didn’t have the better toys like his older brother. What is funny is that they are the same to this day – my husband is a saver, his brother a spender!

I think the Star System is a great and effective way for children to understand the concept of spending and saving and every family should give it a try!

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