Michael, a distribution manager in Texas, noticed many adults struggle with financial management due to poor spending habits. He decided to teach his children about finances early on, starting with rent and other expenses, so they would value and use money wisely.

"I want her to understand that money doesn't grow on trees and it's not all for frivolous spending," Michael said.

Michael Madden, from the US, is collecting rent from his 6-year-old daughter and creating a spending plan for her. Photo: People

Michael Madden, from the US, is collecting rent from his 6-year-old daughter and creating a spending plan for her. Photo: People

He created a chore chart to help his daughter, Rose, who is about to start first grade, understand how much she can earn and how much to allocate for rent.

Rose earns points for completing chores and practicing good habits like brushing her teeth without reminders or helping with cleaning. 25 points earns her 5 USD, and 30 points earns her a bonus. From her earnings, Rose pays 20% for rent and utilities. This gives her a visual understanding of household expenses. She can save or spend the rest with her parents' guidance.

"The money is saved for her. We don't take her money. The goal is to show her that when you earn money, some of it goes towards necessities before wants," Michael explained.

Rose has grasped the concept better than Michael expected. She understands the burden of rent and other expenses adults face. She knows electricity isn't free and that saving is necessary for larger purchases. Michael has also noticed Rose is more mindful of her spending while shopping, stopping herself when items exceed her budget instead of making demands.

"She's proud of earning money and excited when she reaches her goals. Sometimes, she even reminds me to update the chart," he said.

In early August, Michael shared his story on TikTok. The video quickly gained nearly 6.8 million views and over 4,800 comments. "Many parents messaged saying they'd start doing the same. Of course, some disagreed," he shared.

Michael and his wife, Savannah, 27, plan to continue this practice, adjusting as Rose grows, to reinforce healthy habits. He wants his daughter to see money as something manageable and that learning to manage it early will bring freedom and reduce stress later in life.

Thanh Thanh