Pocket Money For Kids
This Pocket Money for Kids post has been compensated. All opinions are mine alone. #respectthepiggy #PiggyBankBook #PBBKickstarter
Our children are watching us everyday. They develop a lot of their habits from us, their parents. Kids develop the majority of their money attitudes from their parents, and I for one can be honest and admit that I believe I could do a better job of teaching my kids about money.
Pocket Money For Kids
Do your kids have pocket money? My kids have received $5 or $10 increments in holiday cards since they were babies (and they still do today). I have banks for them and taught them early on this gifted pocket money went directly into their banks. After a few years of all these cards filled with money from relatives, they each had secured quite a large sum of money.
My son had saved enough money saved to buy a gaming device and a few games and I allowed him to do this as this was his pocket money. My daughters had saved enough money to purchase dolls, horse and doll clothing and I allowed them to make this purchase with their pocket money.
The use of pocket money teaches kids a great deal about saving, budgeting and making wise choices. It is also an excellent way to develop independence in kids. My children were able to set a goal, budget and make a large purchase. But, what I think I forgot to teach was how to promote impulse control and responsibility.
While my kids did save for a very long time to make these purchases, they spent every single dollar of their pocket money and I don't think this was a great way to teach them about control and responsibility. I think I could have done a better job of teaching the thorough use of pocket money and my kids could have learned "better" how to use their money wisely.
Now that my kids had empty banks, my husband decided we needed to set up chores charts with a list of chores and a payment schedule. I really wasn't too keen on the idea of an allowance. There were lists of tasks that needed to be completed and if they completed them, they were paid. It was as simple as that.
When it was time to receive an allowance, I separated their money into three envelopes. Spending, saving and tithing. 50%, 40%, 10%. I wanted to teach my children to spend and save and donate their money wisely.
The chores charts and allowance envelopes lasted a few months before my son decided he simply didn't want to do the chores to receive only 50% of the actual allowance. So, the chore charts and allowances were over. I can honestly say they didn't work well for us. By this time, my son was also receiving cash checks as gifts and we were instituting the same rules money with 50/40/10.
I personally feel my children need to have a regular list of chores they must complete in our home as members of this household. I no longer pay for chores, but they must be completed. Each day, my kids have certain tasks they must complete simply because that is the way our family works best. I much prefer the mental idea of 'I'm helping my family out' versus 'what's in it for me' attitude.
We now give pocket money just because. Money is not handed out in chucks, but is given on an as needed basis. This money is not linked to chores or behavior. Sometimes we need to revisit this plan and explain this concept for thorough understanding, but this will be a work in progress until they are out on their own, managing their own finances.
I also encourage my children to continue to allocate their gifted money 50/40/10. I encourage them to set aside their money for saving and tithing first. I discourage my kids from taking money from their savings (actually they don't have access to these accounts at all), or from money set aside for tithing. If they need more money and they don't have it, they can borrow from their siblings or wait another week - but this is something I don't encourage very much.
Earning Extra Pocket Money
However, I do allow my kids the opportunity to earn extra pocket money. There are plenty of big chores around my home that my husband and I need extra help with. Many hands make light work as the saying goes. My kids can also ask for extra jobs around the house to save for any big purchase they have their eye on.
The Piggy Bank Book
Welcome to The Piggy Bank Book, the pocket money tracker for your kids! It gives parents an easy way to give their kids pocket money, and a fun way for kids to keep track of their pocket money while learning basic banking skills.
About The Piggy Bank Book:
The Piggy Bank Book is designed to help kids slow down, filter out the noise, and figure out what they really want. By tracking their money, your child will take pride in what they’ve accomplished instead of comparing what they have with their friends. It only takes five minutes a week to work through the ledger pages, and it will have a life long impact on how your child spends money.
Spending time working with the Piggy Bank Book will teach your child to thoughtfully purchase instead of mindlessly consume. They will develop a healthy spending habit to take with them into adulthood.
Whether you give an allowance or a weekly payout to your children,, it is still important to teach out kids how to manage their money. One of my jobs as my kid's parent is to prepare my children to successfully handle life in the world by teaching them money management skills. The Piggy Bank Book is a great tool to help me help my kids develop healthy spending habits.