| I was encouraged from the age of 5 to save my | | | | their account. Keep your children motivated by |
| money and my parents took me weekly to the local | | | | showing them the balance as it grows |
| bank so that I could pay part of my pocket money into | | | | - Work out a set amount or a certain percentage of |
| my passbook account. This set me up for life. The | | | | their money that gets put into their savings account |
| habits I learned as a very young girl are still with me | | | | and stick to this amount each week. |
| today and the wealth I have amassed during my life is | | | | - Help them to budget their pocket money so that they |
| a direct result of being taught to respect money. | | | | have money for the little things they want to buy each |
| This guide will help you to understand about paying | | | | week, but also try and work it so that they have some |
| your children pocket money / allowances. It steps | | | | spare money over each week. |
| through many things that you should consider to help | | | | - Encourage your children to put their spare money into |
| your children to manage their money from an early | | | | their piggy bank so they don't spend all of their pocket |
| age. | | | | money all at once. They can use their piggy bank as |
| - Don't make pocket money something that is taken | | | | short term savings for things that they want to buy. |
| for granted. Ideally get your child to do something for it | | | | - They can use their savings account for long term |
| so that they earn it. | | | | savings. |
| - Set a chores list and include such things as washing | | | | - Help them to understand the value of saving money. |
| dishes, tidying their room, putting away their toys etc. If | | | | Let them work out what bigger items they want and |
| they do these things then they can get paid their | | | | help them to see how long it will take them to save |
| pocket money. If they don't then they don't get any | | | | the money. Teach them the more they save now the |
| pocket money. | | | | sooner they will have their item. |
| - Work out what you consider to be a fair amount of | | | | - Encourage your children to save long term for things |
| money to give your child as pocket money. This will | | | | such as cars and houses that they will need one day |
| depend of what you expect your child to do with this | | | | in the future. Keep explaining to them about money |
| money. If you expect them to budget and buy their | | | | and how the savings habits they form now will set |
| clothes, pay for all outings etc from their money, then | | | | them up for the future. |
| you will obviously need to give the child more. | | | | - Reward them when they do reach their savings |
| - Ensure your child understands what their pocket | | | | goals and have purchased that something special. |
| money is for and what it needs to cover. If they have | | | | Maybe give them an extra bit of money as a gift to |
| to buy clothes, outings, entertainment etc from their | | | | congratulate them on their disciplines and success. |
| money, they must know this. | | | | - Don't encourage your children to borrow money off |
| - Stick to your plans of what the pocket money is for. | | | | you under a loan or payment in advance scheme. This |
| You must not give your child large sums of money | | | | is just teaching them bad money habits and getting |
| with the expectation that they then pay for lots of | | | | them used to the world of buy it now and pay for it |
| things, if you let your game down and buy them | | | | later. |
| clothes or keep giving them extra money for outings | | | | - Teach your children to respect money so they don't |
| and entertainment. | | | | feel it grows on trees. If you educate them how to |
| - When you give them their pocket money, insist that | | | | handle money correctly from an early age you will be |
| they put some of it aside into a savings account. Help | | | | setting them up for life. They will understand that |
| them to do this - so this means you need to take them | | | | money is hard to earn and that will encourage them to |
| to their bank / building society each week and help | | | | spend it wisely. |
| them to fill out the deposit slip and pay their money into | | | | |