Pocket money (merged)

kr15snw

I think this kind of thing is a great idea and might be worth sitting down with them and explaining it.

One of my friends had this done with her and she was probably the most sensible with money out of all of us!

Her parents gave her about £50 - £75 a month pocket money. But they only bought her the basics. Food, clothes for shoes etc. They would buy her basic toiletries, but if she wanted brands they had to buy it themself. Same for clothes. Parents dressed her for school and said they would buy her normal clothes (jeans and t-shirts). But if she wanted a nice top to go out in she had to buy it her self. She also had to pay for her own phone. They did give her a bit more during term time for lunches and bus fayre. BUT if she decided to walk, or buy ingredients for a packed lunch then she got to keep the extra cash!

This worked as they made a full list on what she got from her parents, and if it wasnt on the list she had to buy it herself. Ill always remember the first month she blew it on a treat for herself and she spent the rest of the month eating rice salad (as it was cheap) for lunch and walking to school as she had no money! Soon learnt not to spend it all, lol.

JOANNESAPHINE

Brilliant idea. My daughter is only 11 years old and I currently pay for her mobile top up, which isn't a great deal at her age, I don't give her pocket money but if she sees a cd or dvd she likes I will buy it for her from time to time. Hubbie puts £20 a month into a savings pot for her and my Dad and my Mum separately give her £2 a week which is hers to do what she likes with but I would definitely give your idea a go in a couple of years time. If we can start our children off with financial sense then hopefully they wont get into half the problems that certainly I have had.

MrCarrot

When I have children I'll give them a fiver a week. But that will be after they've washed the dishes all week, cleaned the car and cut the lawn.
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kr15snw wrote: »

Her parents gave her about £50 - £75 a month pocket money. But they only bought her the basics. Food, clothes for shoes etc. They would buy her basic toiletries, but if she wanted brands they had to buy it themself. Same for clothes. Parents dressed her for school and said they would buy her normal clothes (jeans and t-shirts). But if she wanted a nice top to go out in she had to buy it her self. She also had to pay for her own phone. They did give her a bit more during term time for lunches and bus fayre. BUT if she decided to walk, or buy ingredients for a packed lunch then she got to keep the extra cash!

This is what my parents did with me. I think back then it was a fiver a week though (which is probably the equivelant of around £10 a week now). It worked, and taught me the value of money.

civil_disobedience

I'd also be inclined to get them prepared for life as an adult and class their pocket money as taxable income, and take some back away from them and put it towards funding socialist schemes in the household that nobody wants nor cares for.

sammyw

Not sure what I am doing wrong - my ds is 15 and has had his monthly allowance (£20)in his bank on the 1st of every month since November 08. It is always gone within the first day or two. He then goes without until the next month, or gets some money from his nan for doing chores round there. Same with phone top-up, always gone within a day and then tries to use the o8oo reverse to get in touch
Really don't know when the whole learning the hard way is going to kick in!
DD on the other hand and younger son save money and buy what they want no problem!

SSB

I have two children, aged 11 and 13, they both receive a monthly allowance of £40 (directly to their account). I buy their basic clothing; otherwise they pay for make-up, accessories, games, cd's, going out with friends etc. If the money runs out, I do not give them any extra money and they cannot have an advance either. I used to receive a monthly allowance and it was the best way to learn how to budget.

blueberrypie

I've replied to your post on the OS board, so won't repeat what I said there, but I will add a couple of other things. One of the things I think helps it work so well here is that the money goes into the bank by default, rather than being handed over as cash. That way, my kids have to actively go and take money out, rather than it being easy to spend the cash but more difficult to go and put it into the bank! I will say, at the beginning of the month, "How much do you want in your account and how much in cash?" - but I won't just hand over the whole lot in cash. One of my kids has the burning-hole-in-pocket tendency and used to ask for more in cash than he needed - but when he mislaid a fiver once, he decided it was better to keep on hand only what he needed.

If you are concerned about your son managing for a whole month, you could start with an allowance every two weeks, or even every week, rather than monthly, but explain to him that the intention is that he'll learn how to budget effectively with a view to making it monthly when you feel he's managing his money better. (Perhaps you could even agree that when he starts getting the monthly allowance, it will always be five times the weekly amount, even when it's a short month, as a bit of an incentive for him.)

Also, whatever system you decide on, be clear about it, and stick to it. Put it in writing, even if it's just a few notes on a scrap of paper on the back of the door. Everyone needs to know how it's going to work, right from the start. And then don't say "Right, this is your lot until next month" and then start handing out for a magazine here and a packet of crisps there. If you decide that you are willing to extend a "loan" out of the next month's allowance (as we did, because I didn't want them missing scouts etc because they were out of funds), don't make it a freebie.

Katie-Kat-Kins

I'd avoid doing loans where possible and certainly do keep a track if you do make a loan. Encourage them to put aside the money for regular activities or pay in advance if this is possible.

The whole point is teaching them skills, so read up on piggy banking and other budgeting techniques.

Valli

I hear you loud and clear.

DS already has a card account with Barclays...
I have been with DD and opened a card account with the Co-op (which will be on the link network)

I intend to transfer it into the bank. DS is considering changing to the Co-op, as there are cash machines within walking distance of home. For Barclays he has to go into town. Apparently I can 'keep an eye' on the co-op accounts myself, online!

So the money will be transferred into their accounts (as soon as we get the data for DDs) so starting in September.

For school dinners I already pay by cheque and they have a swipe card and a daily limit. I will carry on with this system for now. they don't handle the cash for this so it cannot be diverted. we live close enough to school for them to walk there so that's what they do. There is a bus but I prefer them to exercise. On the days I work they can have a lift 'part way' there, if they are up on time.

I have decided to get them to sign a contract so that they know what money they will get, and more importantly, what they are expected to pay for from it. I think I will start small and not include clothes yet - not least because I am certain DS will spend his 'clothes' money on junk food, sweets and entertainment. But they will be expected to buy 'token' xmas gifts for family as we have a family get-together at christmas.
I will give them an option on loans - either none at all or, (Thanks Blueberry pie) for every £1 they borrow they repay £1.20.
Oh and I had better include a rule about them not lending to each other...because DS will try to borrow off DD!

re the Regular activities DD goes dancing and to jui jitsu both of which are paid for in advance. Might keep them out of the mix just for clarity and so that she doesn't think that, if she were to give up on either she could keep the cash! DS is a footballer.

It's just occurred to me - we could review how this is working in, say, 6 months. If they are being sensible, not borrowing etc I could THEN consider adding a clothing allowance...and review again after a further 6 months.

Shall I buy them little notebooks/cashbooks?

Katie-Kat-Kins

Sounds like you are all sorted! I think "cashbooks" are a good idea, get them practising MSE ways with a spending diary straightaway!

Sounds like for now there won't be any essentials for them to buy though so I'd definitely consider adding a clothing budget and money for other things later so they have more financial responsibility.