There's confusion about the best approach to take when providing children with pocket money. We want to teach our children good habits with money and help them understand its value, especially as an exchange for work. At the same time, children should learn to help out with the household chores as a contributing member of the family, without expecting payment.

Parents need to clarify what lessons they want their children to learn and create a system to support them. Something I've found useful is to start by ensuring children understand that they're part of the family team, and that doing regular chores contributes to the wellbeing of that team.

Create a list of age-appropriate tasks for each child to do daily or weekly, for which there
is no expectation of payment. Separate from these tasks, give them a small allowance weekly or fortnightly. This isn't in exchange for anything, it's a way of teaching them about saving, giving and spending.

Create a list of things each child is expected to pay for with their spending money. Beware of the temptation to buy your child something you have already agreed they should pay for.

Once these habits are established - and your kids understand about contributing to family tasks and know about money management - introduce ‘pocket money'. As a family, make
a list of the extra tasks the children can do to earn extra money.

Tasks need to be age appropriate, with different jobs having different monetary value. Pocket money should be a direct exchange of work for money, so be prepared to do the job yourself if they don't want the extra money.

It's often useful to link pocket money to goals - something special they want to buy
or do during the holidays. Children will start understanding that the work they're doing is giving them what they want. Simple goal charts can help them to understand the relationship between identifying and reaching their goal and the work required to obtain it.

You may be wondering, why all the lists? Lists are facts and can't be argued with - parents can. Lists reinforce the arrangement and can eliminate the long, emotional ‘It's not fair!' debates. Remember, money is a complex topic and learning may take time.

Finally, the amount a child is paid as an allowance or as pocket money must be subject to the financial situation of the family and the expectations of what the child has to buy with their own money. Every family will be different in this respect.

 

 

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