“If they can break up from what they’ve got, they learn that it doesn’t go into one pool. “Get them to break the pocket money up between savings-something they want to put money away for giving-they might want to give to a charity and spending money,” says Helen. This is where the three glass jars come in. a range, so they know how much it all adds up to be and that you can break it down”. She suggests breaking the money up into smaller denominations, “so a dollar coin, 50s, 20s 10s. Helen Baker is an author and financial planning expert based in Queensland and her tip on how to teach children financial literacy using pocket money begins with giving them real money: cash. When to start giving children pocket money Thankfully, the way to ensure our children grow up with good money management skills is as easy as getting them three glass jars. Simply put, if we aren’t careful, we will raise a generation of children who spend far more than they save who owe far more than they are ever able to repay. Research by the Australian Securities and Investments Commission (ASIC) in 2018 revealed one in six Australians is struggling under a mountain of credit card debt that might never be repaid, with outstanding balances totalling $45 billion. In fact, what you do now about their pocket money could help ensure your children don’t grow up with credit card debt plaguing the rest of their working life.
In his book, The Barefoot Investor for Families, popular television personality, author and financial adviser Scott Pape-the “Barefoot Investor” himself-says, “Paying pocket money is one of the most powerful tools you have to teach your kids about money.”
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