We sort of do both. Both of my boys have set responsibilities that they are required to do. They are required to maintain these responsibilities correctly and without being prompted. as they get older, they get more responsibilites. This is just a
perkof being a member of our family and living in our home... they sure are some lucky kids
We also have a chart on the fridge of available tasks to earn $. Each job is worth a small amount (anywhere from .50 per job to a few dollars - value depends on how complicate the job and how often it needs to be done) These jobs are 1st come 1st serve and once a month they get "paid" for thier jobs they did. This is thier money to spend, save, whatever. We do not pay allowance though in our home. If we do something as a family, then mom & dad pay, but if one of the boys wants to do something with friends/cousins, etc, then they have to pay. When we go on vacations, they have to buy thier own souvineers (we may buy something, but it's not a given and we will not be nagged about I want this I want that!) This is helping them to plan and budget. they know they want to go to laser tag with a friend next weekend, well, it costs xyz so they can't buy that icre cream or whatever so they can save $ for lasertag. When we are getting ready to go on vacation (Disney in Nov, Cruise in May) we generally make more jobs available to them as a way to earn some extra money, but we don't make them. One vacation, my youngest had saved over $80 for his vacation money, yet my older son only had $20.. man was he annoyed! but.. it only happened once! part of this system is also "fines" they get fined for violations (not doing regular assigned tasks,being disrespectful, lying, stealing, cheating, fighting, etc) So as an example, they earned $30 in work and got fined $5 and get paid $25.
Now my boys are 13 and 10 right now, but we started this process when they were around 6 and 9 and for now this system has been working great for us over the past 4 years. We have tweaked it over the years based on thier age, maturity etc and I know as we enter the TEEN years it will be tweaked some more.
The one thing is to be consistent and clear. Clearly state the rules, expectations and consequences and follow through. As long as you do this, any program or process you set up will work just fine. Good Luck
