Sent: 20-04-2010 10:07:06
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Pocket Money and Kids
Whenever you approach a problem or negotiation you will seek to balance the needs of the individual with the needs of the group, the needs of today with those of tomorrow.
From a money point of view, this concept is important, and translates into seeking justice for all concerned. Be prepared to ask for a fair day's pay for a fair day's work. Treat all family members equally in determining your household's spending, and remember to put something aside for those less fortunate, and for the future. Be happy to pay the appropriate amount of tax for the greater good of the community.
Make sure your kids know that their pocket money comes to them as a result of the way they help with the family's workload. Be prepared to withhold pocket money if someone is not doing their bit.
Decide which household tasks the kids are expected to help with just for being part of the family (these may be tasks like tidying up after themselves, cleaning their teeth, making their bed). Then allocate age appropriate tasks that the kids can do to earn pocket money. Don't introduce pocket money to younger children until they are able to make a meaningful contribution (ie they can be allocated a task within their capability so that they are able to succeed with the task, and make a decision to complete or not complete the task based on known consequences). Most will come to a time when they ask about pocket money and how they can earn it. This a great time to introduce it.
With older kids, try using a rewards chart to negotiate and list the tasks they are allocated and the rewards to be earned. Rewards can include pocket money for certain tasks, as well as other monetary and non-money rewards for their expected household contribution or extraordinary projects.
You can also discuss how our taxation system works, and what it funds with this age group. Some parents actually deduct tax when they pay pocket money to teach this lesson. The 'tax' can be put towards something the whole family wants to buy.
'The 12 Secrets of Pocket Money' ebook by Greg Smith is a great resource for parents to use to set up and maintain a healthy pocket money regime in your household.
For great resources to help you teach your kids about money, including rewards charts and ebooks, see www.qld.kidsmoney.com.au. Leanda Kayess can be contacted on firstname.lastname@example.org, or phone 0409 057 952.
What's your practice doing to help improve the financial IQ of your clients' kids? Discover how you can enhance your corporate social responsibility with the KidsMoneyRedBucketPrimary School Program. Contact email@example.com.
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.