An innovative System for Paying Pocket Money
Mark Bouris advocates paying pocket money by asking your kids to submit a list of expenses - a budget as a basis for receiving pocket money. This budget may include school lunches, bus, mobile phone recharge, clothes money, weekend hobby and sports money.
When kids submit a budget, parents need to review each submission and when there is an agreement the money be directly transferred into each child's bank account each Friday and available for use on Monday.
Mark noted that the benefits to kids include:
- Focus on what money they need & how to justify it
- Disciples kids to align spending with their pocket money
- Appreciate that money is a useful & valuable asset
- Become aware on where money comes from & how money is spent
- Learn how the banking system works
- Recognise the importance of saving
- Understand the affect of inflation on spending
- Become more responsible with money
Checklist
- Pocket money should be a privilege, not a right
- Decide if pocket money should be awarded for chores that ought to be expected of them e.g. making their bed & cleaning up after themselves
- Make a pocket money plan & stick to it! This helps children to get into a routine; they will know how often to expect their pocket money & how much they will be receiving
- Randomly & freely handing over money to children can result in them expecting money whenever they want it or ask for it
- Encourage children to write down all their weekly expenses e.g. bus fares and lunch money. This will help them to compare the value of money in different situations & for you both to discuss & evaluate an appropriate amount of pocket money
- By creating an expenses list your child will realise that by cutting back expenditures they can create a surplus of money to spend on something special like a new toy or book
- Remind your children that it is not realistic for a budget to be adhered to all the time; necessary one off expenses will teach your children that it is important to have some money saved to help cover such costs
- Usually, a child's attitude toward money originates from the adults in the house; if parents frivolously spend money on material items & do not aim to save a portion of their income, this attitude is likely to be instilled upon the children
More Information
www.ybr.com.au
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