Sunday, 19 August 2012

Earning Pocket Money

I do not believe in giving pocket money without children earning it well that's what I tell the children anyway as they do not know they have a child trust fund! I think it does them good to understand about the value of money by having to work for it.

They earn stickers by helping out in the house and behaving well. Once they have 10 stickers the earn £1 and they have a bank account to pay it into when they want to.

As a child I did not get a formal financial education form my parents but I observed how they saved hard for what they wanted and hated being in debt if they were forced to borrow money to buy emergency items. Now, I am the same and save hard and spend wisely and I hope that I can teach the children the same thing.

At the moment they want to save up for toys, but I am really hoping that they will start to understand how important investment at an early age is and so by the time they have saved up for what they want, they will no longer want it. I am not sure that the desire for a Lego Robot or a Nintendo DS will wear off, but I hope that it will.

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