Chores.. I have no problem him paying the kids for Chores...BUT...I have a problem if you give them the same amt of money each week, and they only do half the chores

..My son is to take trash out each day, and believe me our family of 5 makes a lot of trash...If I have to take the trash out, or have to remind him 5 times to take the trash out even though he walks past it 10 times a day., does not make me happy.
If my daughter's job is to feed the dogs, and I feel them 5 out of 7 days(If they waited for her, they would starve), why should she get paid for that chore???

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If DH is going to pay them the same amount, then you can "charge" them when you have to do their chore. For example, tell your son that every time you have to take out the trash, he has to pay you a dollar (or whatever). If you can't get him to pay, then you can work it out some other way -- like he loses the computer, or the Wii, or can't have ice cream when the rest of the family does, etc. Same thing with your daughter. Maybe if you have to feed the dogs, when you make dinner she has to make her own -- associating food with her chore of feeding the dogs. I'm sure you can think of things that will work for your situation.
I agree with you on the chore thing -- maybe you can discuss it with DH and use the "act like school is a job" thing since he pays for grades. Say "I see your point on paying for grades since the kids' full time job is to go to school, so let's do the same thing with chores. We'll start paying them at the end of the week, like we do at report card time after the school work is done, and pay them based on the chores they did that week." If you present it in a way that validates his position on one subject (the paying for grades), he might be more likely to give it a try. Then your son and daughter's weekly money would be tied directly to the work they did during the previous week. Good luck!
-Dorothy