Every kid wants pocket money and it’s a great way to start teaching your kids about money.Here are some of the common questions parents have asked me when it comes to pocket money.
Give your kids an amount that you are comfortable with and that you can afford. If you can, start by giving them a weekly amount that is equal to their age. This makes it fun and easy for the kids to remember.
One of the common mistakes parents make is that they don’t give their kids pocket money on a consistent basis. Give your kids pocket money weekly. Pick a day and time where you are all together and you can talk to your kids about money and answer any questions they may have.
Pocket money is a fun and easy way to start teaching your kids to manage money. I started giving my daughter pocket money when she was seven years old. Did she know why she was getting pocket money? Here’s how my conversation went.
Daughter: Hi Dad, are we going to play down ball today?
Me: Yes we can play, but can I ask you a question first?
Daughter: Okay, but then can we play down ball?
Me: Of course. Do you know why Mum and Dad give you an allowance each week?
Daughter: What’s an allowance?
We were officially off to a rough start. I had to act quickly before I lost my daughter’s attention.
Me: Sorry, I meant to say “pocket money.” Mum and Dad give you pocket money every week.
Daughter: Yes I remember the “pocket money”. Sorry Dad, but I don’t know why you give me that money.
Me: We give you that money because we think you are old enough to save.
Daughter: What does “saving” mean?
Me: Can you remember that Care Bear you showed me yesterday? Can you remember how much it cost?
Daughter: Yes it cost $70. Can I get one?
Me: You need to have $70 in your money jar before you can get one.
Daughter: That’s going to take a long time.
Me: Don’t worry. We can check how much you have when you get your next lot of “pocket money.” Now let’s go play some down ball.
Call to action:
Start giving your kids weekly pocket money.
The money conversation above is an extract taken from my book “Don’t Eat the Marshmallow – the fun and easy way to teach your kids about money”