Do you find pocket money, rewards and treats hard to keep track of without spoiling your kids? Getting your children into a regular pocket money routine from an early age encourages children to take responsibility for their own finances and helps you keep track on what you spend on them.
Pocket money expert and CEO of Roosterbank, Ben Edwards, gives his top tips on how to better manage the pocket money in your family.
- Be consistent and keep it fair Each family has a different approach when it comes to giving pocket money – there is no right or wrong way. Some parents prefer to give a regular weekly amount which their children are expected to cover their day to day spending with, like bowling trips or buying a weekly magazine. Other parents prefer to use reward charts and convert stars into pocket money once enough have been awarded. However you do it, be clear with your children about how much they can expect to receive and what conditions apply.
- Keep track Knowing how much you give your children and what they use it for will ensure your pocket money routine is easy to maintain. An online tool like Roosterbank can help make managing your routine really simple; parents can set weekly pocket money credits and boost or remove pocket money on an ad-hoc basis. Even better, with Roosterbank you can manage the whole family’s pocket money from one account. Parents can also use Roosterbank on the go with an easy to use mobile site.
- Only give gifts on special occasions However tempting it is, try to avoid spoiling your children with too many ‘extras’ or you will undo the good of your routine. If they come to rely on extra pocket money treats to cover their spending, your children won’t learn the importance of budgeting and that once it’s gone, it’s gone!
- Put your children in the driving seat Letting your children make the decisions about what they do with their pocket money within the boundaries you have set not only encourages them to think about their money carefully, but will also lead to positive family discussions about how money should be spent. They will also learn the cost opportunity of their decisions and that if they get one thing, it will be at the expense of another. This will make them more savvy savers. Interestingly, 80% of young Roosterbank customers prefer to set their earnings aside instead of spending, proving the website is helping them learn the true cost of spending verses saving.
Roosterbank.com is a free-to-use website that has reinvented the way families manage pocket money. The website makes it easy for parents to keep track of day-to-day saving and spending and helps children develop the skills and confidence to manage money carefully via simple tools and fun games. To set up your own Roosterbank account for you and your children, visit www.roosterbank.com.