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Tip Store: Children: Money Management
Spending Money is Not Just for Kids
Approximate $ Savings: Not sure yet
As a busy Mum of 5 working full time it's always been easier to buy the kids things as they need them and they know that they've always had the better deal as if they had spending money they would have to stick to a budget. But after some months of learning to be frugal we decided to give the kids spending money each week. Then I came up with the idea of my hubby and I also having spending money. It's amazing how much money we DON'T spend when we know its limited and it has to last all week. We have agreed that if we want something we have to save for it out of our spending money. I treated myself to a necklace and bracelet on sale for $14 for both as I had that left over...my work colleague has actually taken this idea on board and is going to do the same. I actually feel great having the control over my spending and find that I get quite excited if I don't spend it and am finding that as time goes by I am spending less and less of my spending money as I hate to see it frittered away.
Contributed by Dawn Styring, 25th May 2013
As a busy Mum of 5 working full time it's always been easier to buy the kids things as they need them and they know that they've always had the better deal as if they had spending money they would have to stick to a budget. But after some months of learning to be frugal we decided to give the kids spending money each week. Then I came up with the idea of my hubby and I also having spending money. It's amazing how much money we DON'T spend when we know its limited and it has to last all week. We have agreed that if we want something we have to save for it out of our spending money. I treated myself to a necklace and bracelet on sale for $14 for both as I had that left over...my work colleague has actually taken this idea on board and is going to do the same. I actually feel great having the control over my spending and find that I get quite excited if I don't spend it and am finding that as time goes by I am spending less and less of my spending money as I hate to see it frittered away.
Contributed by Dawn Styring, 25th May 2013
KIDS and Money
Hand over responsibility to them by providing them with their own money. What better way to educate your children than sending them out into the credit-laden real world. Start them on a weekly pocket money regime - they receive this money whether their chores are done or not. My 2 young 'uns (who are now responsibly fiscal/frugal teenagers - who continue to help around the home regularly) - received $$$ before they went to school. $1 for every year of their life is a reasonable start. My daughter who is now 15 is starting her first paid job at KFC and is SAVING for her ITALIAN trip next year. She is going to meet 1/3 of the overall cost and provide ALL her own spending money. My son who is 12 has been SAVING for his own home since he was in Grade 1 - No - I am not joking! ALL their own choice...........and, sure they've made some dumb decisions with their $$$ but better now than later.
Contributed by Melinda Rau-Wig, 10th June 2013
Contributed by Melinda Rau-Wig, 10th June 2013
Kids Feeling Deprived because of Cheapskating Parents
I have been Cheapskating in my own way for some time, but have really cracked down over past few years and even more over past year. We now have our grocery budget at $80/week, this includes toiletries, for a family of 4. Some co-workers were shocked at this when it came up recently, as one has a mail ordered diet plan for over $110/week for one person. Anyhow, to get to the point, the kids. We give them an allowance, which is kept up to date along with all other budget info on our EBBA budget (free app). The allowance is allotted with so much to "spend now", "save"-for big purchase, "donate" and "long term savings". They can "spend now" anytime they like. They must want something at least for a whole day before they spend "save" money. My 4 year old gets $5/week and my 7 year old now gets $8/week and the total which is divided into those categories. My daughter doesn't understand this yet. However, I have found that my son doesn't get upset when I tell him no about buying something as when he had no allowance. He understands his allowance and that he can choose to spend on toys today or to save for that thing he has been wanting, it is up to him. With him having control over his purchases/money, he is making a lot more decisions and a lot less impulse buying. This is a valuable life skill which needs developing to raise financially responsible children into adults. Also, with developing understanding about money and that mummy and/or daddy must work to have this, we have discussed this with my son and he says he'd rather have mummy and daddy home more and spend less money. He is really developing the outlook on life about what is truly important. We recently have instigated jobs for our son, he can do the dishes etc. for 50cents, course they must be redone, but he learns working for extra money. We are about to instigate, since he is 7 now, that if he doesn't tidy his room each week, he must pay his parents to do it for him, some nominal fee (maybe a dollar). We'll see how that goes. Hope that helps.
Contributed by Jeannie Tanner, 8th June 2013
Contributed by Jeannie Tanner, 8th June 2013
Just for Fun
My kids are aged 6 and 7. I tell them that I look for bargains because it's fun. The better the bargain, the more fun I have. I never bring money into it. As a result, when I take my kids shopping to spend their pocket money, they take their time, and look for 'bargains'. They have over time realised that by 'bargain shopping', they can buy more items with the same amount of money. It has become fun for them too.
Contributed by Chrissy Bourke, 8th June 2013
Contributed by Chrissy Bourke, 8th June 2013
Kids and Spending
I have tackled this by showing my kids just what the rewards can be: growing bank accounts, saving for that holiday, special treats with savings. This has helped them to embrace living in this way as they can see the outcome. Hope this helps :)
Contributed by Kate Martin, 7th June 2013
Contributed by Kate Martin, 7th June 2013
Relieve the Pressure of "I want, I want"
This strategy worked for me, it was shared with me by another mother when my kids were in their early teens. Every time I went to the shops my kids would ask me to buy them something, food treats, toys, clothes, lots of things as well as school lunches, DVD hire, trips to the movies, junk food etc. I felt a lot of pressure from one of my children in particular who would react badly to "no" and as a sole parent I was alone in being the "meanie".
I calculated what it should cost me to provide a reasonable amount of essential and recreational goods for my children. "Reasonable" meaning what I would like to be able to provide and what my budget allowed. I then asked my kids if they would like to be responsible for all their own discretionary purchases. They liked the idea, and over a couple of weeks determined what they thought was a fair amount, and what items they should pay for themselves.
Their figure was very similar to my estimate - $200/month each. For the next 4 years, they both received that amount every month, for all their clothes, entertainment, DVDs, snacks etc.
Surprisingly, they never asked for a raise. If they asked for something while shopping that they needed to pay for I reminded them gently to use their own money. I rarely gave an advance.
This system really helped me to budget the household income and relieved a lot of stress.
My boy spent most of his money on DVDs, rarely clothes but that was his choice. The daughter saved and then would go wild buying clothes every few months.
The other strategy I implemented after having months of "I want, I want" before Christmas and Birthdays, was giving cash as gifts. It was a generous amount, they could choose how they wanted to spend it themselves and add it to their allowance if they wanted to. This was how they afforded expensive items like Playstations etc.
Once again it helped me with my household budgeting and took the pressure off. I truly believed it taught them important life skills and it made them an active participant in household financial management.
Contributed by Astrid Chapman, 6th July 2013
I calculated what it should cost me to provide a reasonable amount of essential and recreational goods for my children. "Reasonable" meaning what I would like to be able to provide and what my budget allowed. I then asked my kids if they would like to be responsible for all their own discretionary purchases. They liked the idea, and over a couple of weeks determined what they thought was a fair amount, and what items they should pay for themselves.
Their figure was very similar to my estimate - $200/month each. For the next 4 years, they both received that amount every month, for all their clothes, entertainment, DVDs, snacks etc.
Surprisingly, they never asked for a raise. If they asked for something while shopping that they needed to pay for I reminded them gently to use their own money. I rarely gave an advance.
This system really helped me to budget the household income and relieved a lot of stress.
My boy spent most of his money on DVDs, rarely clothes but that was his choice. The daughter saved and then would go wild buying clothes every few months.
The other strategy I implemented after having months of "I want, I want" before Christmas and Birthdays, was giving cash as gifts. It was a generous amount, they could choose how they wanted to spend it themselves and add it to their allowance if they wanted to. This was how they afforded expensive items like Playstations etc.
Once again it helped me with my household budgeting and took the pressure off. I truly believed it taught them important life skills and it made them an active participant in household financial management.
Contributed by Astrid Chapman, 6th July 2013
Teaching Kids to Budget
I taught my daughter to budget and be careful with her money. She is better than I am. When she was 5 she received a base salary for her basic chores i.e. put toys away etc. with additional funds for extra jobs. I also told her I would only then provide food, clothes and housing needs. If she wanted anything she had to buy it herself. She is now 16 salary is $50 per week and she pays for all clothing, mobile phone and other wants with her own money. Her job is to study and keep her room my idea of clean and to help maintain the house in a general state i.e. dishes away, washing in etc. If she wants extra she can do one of my jobs at a fixed dollar amount. Unfortunately she is so good with her money and identifying cheap alternatives that she has no need for my jobs. I learned this from one of my school friends' mothers. She always got lots of pocket money but at 13 all clothing and entertainment came from this. She took her own lunches, cycled rather than ride the school bus and learnt to make, mend and op shop her clothes. She paid cash for her first house at 21 and was the proud owner of her first business at 19, an organic lunch takeaway store and owned the best pizza takeaway the area at 20. I hope it helps. It was hard at first but my daughter is financially able to buy whatever she wants. She just doesn't seem to want anything. Probably because she has to pay.
Contributed by Kylie Axford, 6th June 2013
Contributed by Kylie Axford, 6th June 2013
Train Your Children to be Cheapskates
For this family getting the children to enjoy saving started about 10 years ago when I was approached by the children who were 9, 7, 5 and 3 at the time about school lunches. They were given the choice: school canteen lunches or 4 weeks of holidays. As there is the reward of holidays they all help in whatever way they can e.g. walking to school instead of the bus or car. During the last ten years we have had three weeks in New Zealand, two 17 day holidays in Fiji and 15 days in Honolulu plus several holidays in Australia. Your situation may not be such that holidays are the reward but there maybe other options such as a night out at the movies or a meal at a restaurant. Maybe when a certain amount is save ,or debt reduced then a night out is the reward. Another option might be special clothes or linen.
Contributed by Ann Green, 6th June 2013
Contributed by Ann Green, 6th June 2013
No Fussing Earns Holiday Spending Money
Since we're coming up to school holidays soon I thought this tip might be appropriate. When I was young and we were going away on holidays it used to take 6 hours in the car each way. Being 3 kids between 5 and 10, in the backseat of the car, we used to argue ("Don't touch me" is hard to do when your three abreast in the backseat) and drive Mum and Dad nuts. As it was holidays, we used to get spending money, not much, $10 each or so. To stop the fussing in the car, Mum decided that every time we argued she'd dock us 50c or so, and after a period of being good, we'd get it back. Strangely enough once the holiday funds started getting down past the $7 mark, we were fantastic kids the rest of the trip, and we managed to behave enough to get the full amount back just about the time the trip finished and we were there. We ended up having more fun on the trip because we were concentrated on amusing ourselves together rather than arguing, and Mum tells me it was the best idea she'd ever had for her and Dad's peace on the trip.
Contributed by Deanna Storey, 16th September 2010
Contributed by Deanna Storey, 16th September 2010
Lolly Day
Approximate $ Savings: Money, sanity and health
As with all mothers, the trip to do the shopping with children can be an absolute nightmare. We all know the best things to do is to leave the children at home but that is not always possible. I have a 5 year old boy and a 3 year old girl and I was finding it difficult to get out of the shops with out losing my sanity from the constant "Can I have this? Can I have this?" And of course if one wanted it then the other automatically wanted it too. About a year ago my best friend came back home for a holiday. As a bit of nostalgia, we went into an old corner store that she worked in as a teenager and bought some lollies old style, choosing each one we wanted through a cloudy glass counter. The kids loved this so much that I began the tradition of lolly day. Every week, on the same day at the same time (after I pickup the 3 year old from kindy as the store is on the same street) they get to choose $1 worth of lollies each, of which there has to be at least 3 chickos each for Daddy (it's always good to share). The novelty still hasn't worn off even after a year and now in the shops if they ask for something, I just ask them "Is it lolly day?" and they accept it's not the right time for a treat. Strangely it seems to have worked for most things now, having broken the habit of asking for everything they can, and accepting a no for an answer when they do. Shopping is easier, I'm not making rash purchase decisions, and my kids are happier and healthier.
Contributed by Andrea Blackman, 12th January 2011
As with all mothers, the trip to do the shopping with children can be an absolute nightmare. We all know the best things to do is to leave the children at home but that is not always possible. I have a 5 year old boy and a 3 year old girl and I was finding it difficult to get out of the shops with out losing my sanity from the constant "Can I have this? Can I have this?" And of course if one wanted it then the other automatically wanted it too. About a year ago my best friend came back home for a holiday. As a bit of nostalgia, we went into an old corner store that she worked in as a teenager and bought some lollies old style, choosing each one we wanted through a cloudy glass counter. The kids loved this so much that I began the tradition of lolly day. Every week, on the same day at the same time (after I pickup the 3 year old from kindy as the store is on the same street) they get to choose $1 worth of lollies each, of which there has to be at least 3 chickos each for Daddy (it's always good to share). The novelty still hasn't worn off even after a year and now in the shops if they ask for something, I just ask them "Is it lolly day?" and they accept it's not the right time for a treat. Strangely it seems to have worked for most things now, having broken the habit of asking for everything they can, and accepting a no for an answer when they do. Shopping is easier, I'm not making rash purchase decisions, and my kids are happier and healthier.
Contributed by Andrea Blackman, 12th January 2011
Pocket Money Adds Up
We have two children aged 7 and 2. Their pocket money is $1 per age year, they are not required to do specific jobs but help out when asked. At the end of the week they are paid their pocket money, half is shop money to spend as they wish the other half is put away for savings. When their money builds up it is banked into their savings accounts. When the kids have an occasion that comes up there is money to be found for associated costs. The other thing we do is put all our 50c pieces aside and at the end of the week they are divided up evenly and added to the savings money of our children. It is amazing how quickly you can add an extra $3 - $4 per week to their savings for such a small sacrifice.
Contributed by Angela, Winnaleah, 24th June 2009
Contributed by Angela, Winnaleah, 24th June 2009
Teaching the Value of Saving
My son has Aspergers and drives me crazy with his constant demands for treats and toys and games, especially since we are in a bit of a pickle due to me still suffering from Ross River Virus and missing lots of work due to illness. So I have been sticking to my guns and he has escalated but I am still going at it. I have devised a pocket money system for him to encourage him to do his jobs and his homework. We list his earnings on the fridge so he can watch it grow and I have shown him what he should get if he does all he his jobs. he is not reaching that but at least he is doing some and every time he asks for something I say "How much do you have? Would you prefer that now or do you want to save for what you really want?" and it is helping both of us and we aren't having as many confrontations .
Contributed by Narelle, Berserker, 25th February 2009
Contributed by Narelle, Berserker, 25th February 2009
Teaching Children About Money
When my children were old enough to get pocket money, we bought them a money box, and we bought us 2 each for each of the children. With their pocket money they had to put 10% of their income into their tin as savings, we would take out 5% tax and put it in one tin and charge them 20c a week for income protection so if they were sick and could not do their chores they were still able to have an income. Now my girls are teens and they both continue to save, know the importance of income protection and one has already started her superannuation even though she is not working yet as she wants to start saving for retirement. The girls buy clothes from second hand stores and clearance racks...I think not have I only benefited from this site but also lesson taught will follow my girls into their lives and their families lives!
Contributed by Kay, Christies Beach, 25th January 2009
Contributed by Kay, Christies Beach, 25th January 2009
Coupon Kids Save Mum's Sanity
Approximate $ Savings: up to $500 per year
If you're like me, the thought of taking the kids shopping is horrible! If they whinge, whine, and constantly ask for things (like my kids) there is an easy way to solve it. I have my kids draw and create some "coupons" before we leave. At the shops the are allowed 1 or 2 coupons each depending on behaviour. When they have found something they like, within limits of course, they "redeem" their "coupon" with me and that's it for the trip! It is fun for them, teaches them, and is much less stressful for me!
Contributed by Anita, Bundaberg, 8th October 2009
If you're like me, the thought of taking the kids shopping is horrible! If they whinge, whine, and constantly ask for things (like my kids) there is an easy way to solve it. I have my kids draw and create some "coupons" before we leave. At the shops the are allowed 1 or 2 coupons each depending on behaviour. When they have found something they like, within limits of course, they "redeem" their "coupon" with me and that's it for the trip! It is fun for them, teaches them, and is much less stressful for me!
Contributed by Anita, Bundaberg, 8th October 2009
Teaching Little Ones to Shop Smart
I quite often have to take my grand-daughter shopping with me (aged 3 1/2) so I go through the junk mail and cut out some of the items that I will be buying and paste them onto a sheet of paper so she can help me shop. She has a visual and knows what she is looking for which keeps her busy and I have the cheaper price on the sheet to check against the items as they are scanned. I have saved money this way and I don't buy what isn't on my list and my grand-daughter is learning how to shop smart.
Contributed by Kay, Christies Beach, 2nd July 2008
Contributed by Kay, Christies Beach, 2nd July 2008
Savings Incentive: Tuckshop or the Money?
Approximate $ Savings: $40 per year per child
Our school has canteen once per week. As a savings incentive both my daughters are given the option to spend their $1.00 on an ice cream or save it to buy something more important. My eight year old is saving to buy a new pair of jeans. Not only am I saving on dental work, but on my clothing budget for her. Another incentive for her is she gets more time to play as she isn't stuck in the playground eating an ice cream. We both win.
Contributed by Roxanne, Kingsley, 26th April 2008
Our school has canteen once per week. As a savings incentive both my daughters are given the option to spend their $1.00 on an ice cream or save it to buy something more important. My eight year old is saving to buy a new pair of jeans. Not only am I saving on dental work, but on my clothing budget for her. Another incentive for her is she gets more time to play as she isn't stuck in the playground eating an ice cream. We both win.
Contributed by Roxanne, Kingsley, 26th April 2008
Earning Pocket Money
Approximate $ Savings: $20 per week
We have three children aged 6, 8 and 9. One of my frustrations had been the weekly handing out of pocket money. So earlier this year I let the children know it would be a good idea to do something towards their pocket money, or even better still earn it themselves. The kids threw in a few ideas of what they could do, most of which required mum and dad to pay. I then told them about the people in my office who daily buy coffee and cookies from a near by coffee shop. As they were paying $1 for the cookies, I told the kids I was sure they would be happy to pay half that (50 cents). I told the kids I would ask my boss if it was ok to make cookies and put them in a contain in the lunch room with a note asking for 50 cents towards the cost of each cookie. He said it sounded great to him. Since then the kids (with help from dad) have been baking a selling about 60 choc chip cookies per week. The cost of the each cookie is about 20 cents leaving 30 cents from each one to go to the kids. We are now experts and can make and bake them (60) in about 40 minutes. We see three benefits: 1)have now saved on paying out pocket money 2) the kids have extra money to spend or save 3) the kids are learning that money is earned.
Contributed by Garry, Maiden Gully, 6th October 2007
We have three children aged 6, 8 and 9. One of my frustrations had been the weekly handing out of pocket money. So earlier this year I let the children know it would be a good idea to do something towards their pocket money, or even better still earn it themselves. The kids threw in a few ideas of what they could do, most of which required mum and dad to pay. I then told them about the people in my office who daily buy coffee and cookies from a near by coffee shop. As they were paying $1 for the cookies, I told the kids I was sure they would be happy to pay half that (50 cents). I told the kids I would ask my boss if it was ok to make cookies and put them in a contain in the lunch room with a note asking for 50 cents towards the cost of each cookie. He said it sounded great to him. Since then the kids (with help from dad) have been baking a selling about 60 choc chip cookies per week. The cost of the each cookie is about 20 cents leaving 30 cents from each one to go to the kids. We are now experts and can make and bake them (60) in about 40 minutes. We see three benefits: 1)have now saved on paying out pocket money 2) the kids have extra money to spend or save 3) the kids are learning that money is earned.
Contributed by Garry, Maiden Gully, 6th October 2007
Teaching Kids With Rewards
We are trying to teach our two young children to be both energy and money wise. It is a constant battle to get them to turn off lights when leaving the room. I came up with the idea to make a lolly jar (out of an old glass jar) each and brought a large bag of lollies (on special). Each time they turn off a light they get one lolly in their jar and at the end of the week get to eat them. Amazingly they ended up with 70 odd lollies each, I used Smarties. It will be very interesting to see the difference in our next power account.
Contributed by Liz, New Auckalnd 26th July 2007
Contributed by Liz, New Auckalnd 26th July 2007
Mother’s Little Helpers
Approximate $ Savings: Time Saver
My hint is to raise your children to help around the house - leaving you more time to spend doing other things you need to (like having time with hubby), and giving your children a sense of responsibility, belonging, team-work and achievement.
Contributed by Sharon, Hoppers Crossing, February 13th 2007
My hint is to raise your children to help around the house - leaving you more time to spend doing other things you need to (like having time with hubby), and giving your children a sense of responsibility, belonging, team-work and achievement.
Contributed by Sharon, Hoppers Crossing, February 13th 2007
The Pocket Money Lucky Dip
I used to give my children (age 5 & 7) pocket money each week, which tended to be spent on junk and taught them nothing about the value of money. Now I have a lucky dip box instead. I simply purchase things on special and add to the box. The kids always get better value than before, I'm spending less, and the junk factor has been reduced in our home.
Contributed by Linda, Queensland, 5th January, 2007
Contributed by Linda, Queensland, 5th January, 2007
Children’s Saving Incentive
This idea is an investment in the future of my parents children and grandchildren's saving habits. As soon as they are old enough to receive regular pocket money, Mum and Dad promise them that when they have saved a certain amount, and banked it, they will give them an equal amount! (They are pensioners, but have learned how to save!). My parents' fifth grandchild, aged nine, is now close to her first $100! The other four have all saved enough for extended overseas trips while at school - and three have been! (One is back home and is now saving for a first house deposit!) Nothing has given them greater pleasure than seeing these young folk take charge of their finances at an early age. They will be set for life.
Contributed by Kaye, Dianella, May 23rd 2005
Contributed by Kaye, Dianella, May 23rd 2005
Reaping the Benefits
My brother's nine-year-old daughter is in charge of a small but productive vegetable garden. She is responsible for planting and watering the vegetables and also for 'selling' them to our family. We pay her for any vegetables we need. She also sells the excess to family and friends. We get great fresh produce at about half the supermarket prices and she gets to learn how to run a small business and learn the important lesson of managing and earning her own money.
Contributed by Kaye, Dianella, May 23rd 2005
Contributed by Kaye, Dianella, May 23rd 2005
How to Save and Get the Kids to Clean the House!
My brother's kids, aged 6 and 11, were always asking for things at the shops, or for takeaways, computer games and so on. They were both leaving things lying around and their rooms were in a mess. My brother decided to solve both problems with one answer - the PAYDAY scheme. Using his computer he made up a list of jobs that both kids could do and decided after consultation with the kids, how much each job was worth. Making their own bed for example is worth 10 cents per day, washing up is 20 cents, and keeping a tidy bedroom for the week is worth a whole dollar! He also made up a sheet of 'personal cheques' a savings account sheet, a cheque account sheet, and a cardboard 'credit card'. At the end of each day the kids make a list of their jobs and payment due, and at the end of the week they have payday. 10% of the money earned goes to their savings account and 10% goes in 'tax'. The balance goes into the cheque account, which can be accessed by writing him a cheque, which is exchanged for cash. If they run out of money or need extra for purchases, they need to use the credit card, which has a limit of $10. Using the card costs 20% interest per week - so they have not tried to use it yet; instead they save up for the things they want. At the end of the month if they have been really good at home and at school, they get a 'tax refund' of the tax they have paid - if they have been bad, he gets to keep the tax money! They are not allowed to spend money from the savings accounts and both have over $20 saved already. It's great, no more added expenses for him every time he goes near a shop, and he has a lovely clean house with well behaved kids. The whole system took about an hour to print and organise, takes 10 minutes per week to manage and costs him absolutely nothing to set up.
Contributed by Kaye, Dianella, May 23rd 2005
Contributed by Kaye, Dianella, May 23rd 2005