According to an article in the Evening Herald yesterday, some Irish teenagers are being paid over €1,500 a year in pocket money.  The survey by the Irish League of Credit Unions reported that 51% of those surveyed stated that they received pocket money which ranges between €5 and less up to €30 or more per week.  The aims of the survey were to look at the financial perception teenagers have and their views on saving and spending money.

It is imperative that we equip our children how to use money especially in the current economic climate.  This life skill needs to be taught in an easy and fun way and in a manner that does not appear to be preaching to them.

When giving your child their pocket money, ensure they understand what it is for.  Firstly, they should earn this money, by doing their household chores.  These should be age specific and checked, if the job isn’t done right, then they should do it again or get a reduced allowance.  They should of course clean up their own room and perhaps help with meal time prep before and/or after free of charge.  Money has to be earned, it does not come free!

Teach them to budget – how to plan their spending.  Instil in them to have a sensible attitude to money management.  Explain that they should spend a little, save some towards something they really want like a laptop or phone or for their future and share some.   Teach them to be civic minded, encourage them to donate a small percentage of their money to a charity.  Children learn from what they can see, through experience and from your guidance.  Try the free online tool, BillsManager.com, to help your family to budget your household bills and expenses.  Include the children when updating it so they see that money management is an important part of everyday life.