Giving pocket money can be difficult and time consuming – which is why we created Roosterbank! Whether you plan on using an online tool to help you or not, getting into a pocket money routine will help your whole family benefit from giving pocket money. Every family is different and you need to design a routine that works for you but here are some of our top tips.
Link how you give pocket money to conditions.
Chores and Jobs - Giving pocket money in exchange for your children completing jobs can be a great way to reinforce that money is ‘earned’. As we all know, getting paid for work can be hugely rewarding and earning something, however small it is can be very satisfying for your children. It will also make them think carefully about how they spend it – something the academics agree with to! Remember to be clear what jobs are pocket money worthy versus things you expect them to be doing as part of the family.
Use a Reward Chart - This can be a brilliant way to get your children going with pocket money as well as incetivising them to help about the house. You can either pay by chore completed, chore earned or only give an agreed pocket money amount if all stars or chores are completed. In our experience, children love to see the progression that reward charts give them. We created our own here >
Behavioural - Awarding your children for good behaviour is something popular amongst parents of younger children on Roosterbank. While this can be hugely effective, keeping it positive is important. Many parents use the threat of not getting pocket money as a means of getting their children to do something. We don’t recommend taking pocket money off them as this doesn’t encourage children to save carefully for fear their heard earned cash will be raided!
Only give gifts on special occasions.
Everyone loves a gift and there is nothing better than receiving some unexpected money. However, avoid the temptation to give your children pocket money like this frequently – you will end up spoiling them and undoing all that good your pocket money routine is doing! If either you or their grandparents do give them some cash, make sure that you add it to their overall pocket money, encouraging your children to think about what they will do with it.
Encourage your children to allocate their pocket money.
On Roosterbank we encourage children to split their pocket money between their Wallet (think of it as a current account) and Safe (long terms savings account). We also offer them the chance to save for a treat in the Shop or make a donation.
Getting your children to think about what they do with their pocket money is a really important lesson in budgeting and will help them understand that you need to cover short-term, as well as long-term goals by putting some spending money aside. By stipulating this as one of the conditions when you give them the pocket money, you can reinforce the habit from the outset.
Make it fun and make it stick!
The mantra for Roosterbank.com! Everyone finds banking dreary, something we think should change – which is why keeping it fun for the whole family is really important. Whether it is decorating a reward chart, setting challenges for yourself as well as the children (why shouldn’t you be rewarded for cleaning too) or making sure every one is involved in decisions about the best value lego. This will ensure that your children are fully engaged in the pocket money process and their are less arguments for parents to deal with.