A couple of clients have asked for my opinion on pocket money so I thought I’d share our strategy here.
We give our girls $3 a week ($1 pw per birthday), They get to put $2 in their purses for spending and they put the other $1 into their money boxes for investment.
They each give the Salvo man 20c when we see him on a Saturday morning to share with people less fortunate and they help us choose who to give money to via Kiva each fortnight.
They get to keep half of any windfalls (gifts) for spending money and the other half goes into their investment tins. They currently own Westfield and ANZ shares.
Kids will be kids and pushing the limits is expected but disrespect shown to parents, extended family or friends etc earns a 10% fine. We also want our girls to learn the value of exceptional effort and performance. So, they can also earn discretionary bonuses however the bonuses go straight into the investment tins for future benefit.
If they want something that costs a bit more than their pocket money allows then they have two choices, they can either wait until they have saved the money for it or they can borrow the excess from us. The down side for them is that they can only borrow up to half of next weeks money and it must be paid back from next weeks allowance.
That’s just a strategy we developed based on our values and lessons we want to share with our kids. What are yours?