g as though the pocket money is a sort of a bribe payment to remove the feeling of guilt for not spending enough time with their child.

The third approach is a the Bonus Approach – here, instead of giving regular pocket money you can choose to give your children a bonus payment at irregular times to reward them for things they have done (ie performed well at school etc). Or to include them in a windfall that the family may have encountered (ie a pay rise or bonus received from mum or dad’s work).

2. Work

Giving your child pocket money is a very practical way to teach them about money.

In fact, if you teach them consistently and apply the concept of pocket money properly, you will be able to pass on valuable money skills that last well into their adult life.

Something that they will thank you for, later on in life.

When it comes to pocket money there are many schools of thought.

However, how much you give or how involved in the concept you become really depends on your own personal financial situation, how confident you are with money, and what kind of money knowledge you have.

For those who are not too confident or are simply seeking some guidance on how to handle the area of pocket money with their children, here’s some valuable tips and hints that will make dealing with pocket money a bit clearer :

1. Decide what system you are going to adopt – There are three different pocket money systems you can choose from.

The first is Task Related – here you set a list of tasks to be completed and you pay a regular amount accordingly (you choose whether it is weekly, fortnightly or monthly – however for younger ones weekly is probably more suitable as a month is a very long time in their world). Make these tasks over and above the normal tasks of doing their homework or helping in the kitchen, and depending on their age, set them tasks such as putting their toys away, helping with washing the dishes etc. The total amount you pay could be affected by a non-completion of the tasks. However whatever you do, do not use pocket money as a disciplinary tool as money should not be connected with negative emotions like anger or tantrums etc. The last thing you want to do is to develop negative perceptions about money as children will carry these all through their life.

The second system is the Blind Payment – here an amount is allocated (weekly/fortnightly) despite the type of task or whether it is completed. Use this system carefully as unfortunately many parents who have used the Blind Payment system find themselves feeling as though the pocket money is a sort of a bribe payment to remove the feeling of guilt for not spending enough time with their child.

The third approach is a the Bonus Approach – here, instead of giving regular pocket money you can choose to give your children a bonus payment at irregular times to reward them for things they have done (ie performed well at school etc). Or to include them in a windfall that the family may have encountered (ie a pay rise or bonus received from mum or dad’s work).

2. Work o

tuation, how confident you are with money, and what kind of money knowledge you have.

For those who are not too confident or are simply seeking some guidance on how to handle the area of pocket money with their children, here’s some valuable tips and hints that will make dealing with pocket money a bit clearer :

1. Decide what system you are going to adopt – There are three different pocket money systems you can choose from.

The first is Task Related – here you set a list of tasks to be completed and you pay a regular amount accordingly (you choose whether it is weekly, fortnightly or monthly – however for younger ones weekly is probably more suitable as a month is a very long time in their world). Make these tasks over and above the normal tasks of doing their homework or helping in the kitchen, and depending on their age, set them tasks such as putting their toys away, helping with washing the dishes etc. The total amount you pay could be affected by a non-completion of the tasks. However whatever you do, do not use pocket money as a disciplinary tool as money should not be connected with negative emotions like anger or tantrums etc. The last thing you want to do is to develop negative perceptions about money as children will carry these all through their life.

The second system is the Blind Payment – here an amount is allocated (weekly/fortnightly) despite the type of task or whether it is completed. Use this system carefully as unfortunately many parents who have used the Blind Payment system find themselves feeling as though the pocket money is a sort of a bribe payment to remove the feeling of guilt for not spending enough time with their child.

The third approach is a the Bonus Approach – here, instead of giving regular pocket money you can choose to give your children a bonus payment at irregular times to reward them for things they have done (ie performed well at school etc). Or to include them in a windfall that the family may have encountered (ie a pay rise or bonus received from mum or dad’s work).

2. Work

you pay a regular amount accordingly (you choose whether it is weekly, fortnightly or monthly – however for younger ones weekly is probably more suitable as a month is a very long time in their world). Make these tasks over and above the normal tasks of doing their homework or helping in the kitchen, and depending on their age, set them tasks such as putting their toys away, helping with washing the dishes etc. The total amount you pay could be affected by a non-completion of the tasks. However whatever you do, do not use pocket money as a disciplinary tool as money should not be connected with negative emotions like anger or tantrums etc. The last thing you want to do is to develop negative perceptions about money as children will carry these all through their life.

The second system is the Blind Payment – here an amount is allocated (weekly/fortnightly) despite the type of task or whether it is completed. Use this system carefully as unfortunately many parents who have used the Blind Payment system find themselves feeling as though the pocket money is a sort of a bribe payment to remove the feeling of guilt for not spending enough time with their child.

The third approach is a the Bonus Approach – here, instead of giving regular pocket money you can choose to give your children a bonus payment at irregular times to reward them for things they have done (ie performed well at school etc). Or to include them in a windfall that the family may have encountered (ie a pay rise or bonus received from mum or dad’s work).

2. Work

ot use pocket money as a disciplinary tool as money should not be connected with negative emotions like anger or tantrums etc. The last thing you want to do is to develop negative perceptions about money as children will carry these all through their life.

The second system is the Blind Payment – here an amount is allocated (weekly/fortnightly) despite the type of task or whether it is completed. Use this system carefully as unfortunately many parents who have used the Blind Payment system find themselves feeling as though the pocket money is a sort of a bribe payment to remove the feeling of guilt for not spending enough time with their child.

The third approach is a the Bonus Approach – here, instead of giving regular pocket money you can choose to give your children a bonus payment at irregular times to reward them for things they have done (ie performed well at school etc). Or to include them in a windfall that the family may have encountered (ie a pay rise or bonus received from mum or dad’s work).

2. Work

g as though the pocket money is a sort of a bribe payment to remove the feeling of guilt for not spending enough time with their child.

The third approach is a the Bonus Approach – here, instead of giving regular pocket money you can choose to give your children a bonus payment at irregular times to reward them for things they have done (ie performed well at school etc). Or to include them in a windfall that the family may have encountered (ie a pay rise or bonus received from mum or dad’s work).

2. Work out the going rate - ask other parents what they are paying and what they expect in return. This will give you a general indication, however you’ll need to set an amount you can afford and that you and your partner agree upon. As a guide, pocket money can range between $5 and $10 a week for children aged from 5 to 12.

3. Allocate how much pocket money you can afford – whilst it is good to see what your friends are paying, you will always need to include pocket money in your overall budget. Treat it as a regular expense and budget on it increasing yearly.

4. Pay pocket money consistently - whatever day you decide is pocket money pay day stick to it, as this helps your kids plan around it and teaches them the concept of a regular salary.

5. Teach them what to do with their pocket money - no matter what their age give them 4 basic areas to think about. 1. Giving (for presents / charity, 2. Living (for day to day things like food etc), 3. Saving (for a new bike, CD or toy of some sort) and 4. Wealthing (long term savings for when they get older – ie for a car, education or even a house). Show them how to calculate the time they need to allow to save up for something, and how that time can be substantially cut by eliminating unnecessary splurges.

For example, say you give $10 a week and they want to save up $300. Then it will take them 30 weeks to get there. This is a great lesson for your children to learn when they are young as when they get older they use the same lesson to calculate how many hours it will take for them to buy an in item they wish to buy. Great for helping them discover the difference between needs and wants.

6. Pay them in notes and coins – Notes can’t be divided that easily so to help them easily allocate their money for different things give them a mixture of notes and coins and mix up the way you do that each pocket money pay day.