One of the most important things we can do as parents is teach our children the value of money and how to manage it wisely. An easy way to do this is to introduce a pocket money system that instils good habits, a work ethic and personal responsibility.

To ensure success, keep it fun, make it regular and ensure it is motivating. A great way to ensure your success is to link pocket money to a savings goal, such as going to the movies or buying an iPod or bicycle. Pocket money systems can be structured in a variety of ways.

Try one of these:

Pay every child in the family the same amount each week.

Pay each child an amount that is linked to their age, such as $1 for every year -$5 if they're five years old, $10 if they're 10, and so on.

Link pocket money to a list of tasks to be completed each week, like making beds, setting the table, emptying the dishwasher or putting out the rubbish.

Have a pay rate for each task so that the child can earn more if they put in more effort.

Include ‘bonus payments' for kids who do a task without being asked, or just do something well.

We recommend that you follow these guidelines to minimise stress:

Stick to even amounts that involve gold coins - it saves you from tricky calculations if you're working out cents as well.

Have a weekly payday where a tally of jobs done is made, and the money is paid out. Make sure you have those gold coins ready, though!

Ensure the family pocket money rules are set down in writing and kept somewhere visible, like on the fridge. Keep the rules short and simple.

Aim to instil a savings habit by making your children save a percentage of their money each week - this may vary from 10 to 50 per cent, but is a vital part of their learning process.

Good luck - you are training our future property investors, financial gurus and millionaires!

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