Money Tips: Pocket Money for Kids
We think it is important to teach kids about money, and that's why Clever Kash can teach kids how to save for the things they want. Pocket money is a key part of the savings process so we recently ran a Facebook competition to find out your best pocket money tips, and Kiwi parents had lots to say! There were some great ideas on how to manage pocket money, and plenty of conversation about how it can work.
Here are the top 10 pocket money tips:
- Sitting down with kids and involving them in the discussion was seen as an important part of establishing a pocket money system. This way, children can contribute ideas, understand expectations and then feel like it’s something they are part of, rather than something they have to do. Some jobs may be worth more than others and you could have a discussion with your children about this to teach them the value of work.
- Many families considered general household chores (like making your bed, doing the dishes) to be part of being in the family and there was no pocket money associated with these. Jobs over and above this could be rewarded with pocket money e.g. washing windows, mowing lawns, feeding and exercising family pets.
- Set age appropriate pocket money. Some parents set $1 for every year; for example a 7 year old could earn $7 per week.
- Also consider non-chore rewards eg good behaviour (such as being nice to your sister), school work (reading chapter books, getting 100% in spelling tests, learning maths tables), sports (soccer goals, netball practise), healthy eating (eating all your fruit in your lunchbox or drinking all your water at school), or even picking up rubbish on the street!
- Have a visible chart that lets kids track their progress and tick off jobs done. You can download our handy Clever Kash Chore Chart to help with this here.
- Setting savings goals can be very motivating which you can do via Clever Kash, and having a picture that your child has picked helps to make this real. Find out how to create a savings goal on your Clever Kash here.
- Have a regular ‘pay day’ each week to total up how much has been earned, and sit down together with Clever Kash to update your child’s savings balance and track your progress towards the savings goal.
- Consider splitting pocket money into money to spend, save and donate (or a fund for buying other family members gifts). Spending money can then be spent on what the child chooses. This can also be a great time to teach your kids about the value of giving to others.
- Some parents chose to deduct money if chores were not done, or for bad behaviour!
- You could offer to match or boost their savings efforts for a bit of extra motivation e.g. “For every $10 you save I’ll match it with $5.” You could also put these extra savings aside for them to donate to a charity of their choosing or for spending on other family members.