Giving kids an early start in learning to make ends meet

AliceC says:

09:19am | 05/10/10

I agree 100%. The lessons my father taught me over the years about saving 10% have proved to be invaluable.

Another major lesson was if I wanted it, I have to save for it. No borrowing, no loans. They never bought me a car or mobile phone. Best thing they ever did for me.

Heather says:

10:01am | 05/10/10

My kids had $10 a week pocket money, which they had to earn, by doing chores. As soon as they started work - and they both worked from the earliest legal age - this stopped, and they had to pay their own way, including clothes, mobile phone cards, toiletries and board, which started at the very low sum of $10 per week, and increased to $75 by the time they left home. If they wanted something, they had to save up for it; funny how that absolutely essential item becomes less important with time! And funny how they suddenly wanted to shop at Target instead of Myer. Also, no child was allowed to stay living at home once they finished university/tafe, or got full time jobs. I might sound hard, but I have seen at first hand what mollycoddling children can do; my parents bought my sisters and I cars, groceries, even cigarettes; they paid our rent, and bailed us out of our, inevitable, credit card crises; my middle sister, at 47, is unemployed, and semi-dependent on my aged parents, who are in no position to look after her, but for some bizarre co-dependent reason, won’t kick her out. On the other hand, my 19 & 23 yr old sons are both fully independent, employed, and successful. My oldest son has owned 3 houses, both fully own their cars, and both left home at 18. They might whinge about how mean and stingy I am, but as far as I am concerned, the most valuable skills you can pass on to your children are independence, and resilience.

Dieter Moeckel says:

11:13am | 05/10/10

So many people ‘train their children with pocket money for chores.” This is quite obscene - it’s tantamount to slavery and should be investigated by the Fair Pay Commission.
My wife and I took another approach - Common Wealth and Common Toil - ergo they got what they needed to the best quality we could afford and they helped to the best of their ability.
We went through the “pay for chores” experiment for a single day. We negotiated a price for each chore and paid up.
At dinner we charged a fair price for each meal course and horror of horrors they owed us money. Argument over and we continued to share a common wealth and a common toil. The children are now nearly forty and have a very good attitude to money and are doing quite well.

Bron says:

12:46pm | 05/10/10

We do a bit of both.

To teach the kids about money, wants and needs: They all got an allowance from the age of 8 to 18 (based on age) to cover all of their personal expenses (clothes, gifts, outings). They also got some pocket money ($10 monthly) that they can spend on anything.

To teach the kids about jobs, work and responsibility: They all (like their parents) have to do jobs around the house suitable to their age and ability such that all the jobs (cooking, cleaning, pets etc) are shared between the kids and us parents. We don’t pay for any jobs within the family - we just do them.

The allowance stops at age 18 and they are responsbile for their own expenses. The opportunity to stay at home ends at age 22. We are looking forward to that one!

It has worked a treat for us.

Anjuli says:

01:29pm | 05/10/10

@Bron.  I did what you suggest when my kids were 12 years old as every thing I bought them they turned their noses at. So I gave them the child allowance having 2 kids but only paid for 1 I split that then gave them a clothing allowance and pocket money . I was a school cleaner in charge for 20 years so at that time it was not good money, my husband worked also .We supplied an old car each which my husband kept serviced but they paid the running costs . At the end of all this when they finally left home neither had any savings no amount of telling or chiding made any difference. Now at the ages of 45 and 42 the first born has 2 masters one in business and very frugal with a beautiful old house which she has done up over the years.The other is an RN has another new house house and every thing that goes with it but still no savings so go figure.