Giving children pocket money is an important way to teach children about money and how to manage it. Furthermore, it helps children develop independence and attitudes towards both saving and spending money.
When to introduce pocket money and how much to give:
While there is no right or wrong time to start giving your child pocket money, most Australian children are usually given pocket money from the age of six.
Research has also determined that on average, children between six and ten receive an ‘income’ of $20-25 per month.
It is important for parents to consider an amount that they themselves are comfortable with. Factors to consider when choosing this amount should be based upon the family’s financial situation, and the child’s spending needs.
Important concepts for parents to teach children:
the value of money: the relative price of things
spending: accepting that money is gone once it’s spent
earning: understanding that earning money can be hard work, but usually that’s the only way to get it
saving: using short-term and long-term goals
borrowing: understanding the importance of repaying borrowed money.
Tips for Parents:
Let your children make mistakes when it comes to saving and spending their money.
You may want to restrict your child from spending their money inappropriately, for example, on excessive amounts of junk food, or on dangerous toys/items.
Children often mimic the spending and saving habits of their parents. Parents can teach their children such habits by modelling appropriate spending and saving techniques, and by discussing their methods with their child.
It is also recommended that parents pay their children on a set day in order to develop a routine. This means trying to avoid giving your child advanced payments or supplementing their usual budget with additional funds.
Some parents choose to link daily chores or additional chores with pocket money, while others view family contributions and pocket money as separate issues. There is no set rule when it comes to handling this, so each family must determine what is best for them.
*Information for this article was gathered from the Raising Children Network and Kids Money and Kimberley O’Brien.
Kimberley discussed how to teach your children basic money skills with the reporters from Good Health Magazine. You can find out more information about good money habits for children by visiting our resources page or discussing it on our forum.
In today’s society children are becoming more connected to the media than ever before. With so many entertainment mediums available, children are continuously being bombarded with both advertisements and messages, some of which are positive, however many of which are negative. Many of these messages have led children to wrongly believe that being rich, famous and beautiful is most important.
In order to help combat the negative effects of the media, parents can help their children in a number of ways:
Talk to your children about what they see on the computer or television. By encouraging them to think critically and be skeptical about what they see, they may become more inclined to think critically about other aspects of their lives in the future.
Resist putting a computer or television in your child’s bedroom. Instead, place such items in more public areas of your home. This way, your child will not watch indiscriminately, and you will know exactly what is being watched.
Ask your children to tell you what they like best about the people in their lives. By having your children make a list of these qualities, you can compare them to the most commonly liked qualities of celebrities (e.g. rich, famous), and demonstrate that most people are not liked purely for superficial reasons.
Make sure you remain informed about the types of media that your children are viewing. By staying current, you will be able to have intelligent conversations with your children about the messages and content that they are being exposed to.
Kimberley discussed children and inherited wealth with reporters at Madison Magazine. You can find out more about the pros and cons of receiving inherited wealth and the effects it can have on children, by visiting our resources page or discussing it on our forum.
The full article is available on the Madison Magazine website.
If you have a story and would like to discuss it with us, please schedule a time. Kimberley O’Brien enjoys sharing the best of her therapeutic moments with the media.document.currentScript.parentNode.insertBefore(s, document.currentScript);