With the new school year underway and our children back in the classroom, we wanted to take a closer look at how young Australians are earning, saving and learning about money. So, we went straight to the source and asked 1,001 Aussie mums and dads.
What we found is that while close to seven in 10 children (69 per cent) receive pocket money, only two thirds (68 per cent) of their parents expect them to earn it.
As a mum myself I know it’s important to give children money so they can learn about savings and start to develop good money management habits from a young age. This will help set them up for the responsibilities that come with adulthood. Pocket money is an opportunity to help kids also learn the value of money, and encouraging your children to earn their pocket money is an easy and effective way to begin that learning process.
Children will begin to understand and appreciate the money they receive if they've actually spent time and energy earning it. This will also help them to develop an appreciation for where money comes from, and also value the items they purchase when spending it!
It's never too late, so while changing to an 'earned' system won't be as easy as just changing the rules, here are some simple things you can do to start teaching your children invaluable money management skills.
Give them something to lose
When children get their pocket money they don't expect it to be taken away from them. So you can try giving them their pocket money as normal, but let them know what's expected of them so they get to keep it. If, say, they don't do what's asked, take away small amounts.
Give them something to aim for
Incentivising kids with money is a great way to help them learn its value. If you can give an extra dollar each week, or you're thinking about increasing their pocket money, this is the perfect time to act. Link the extra money to good marks at school or extra chores, so they understand it needs to be earned. And, as an extra lesson, encourage them to put this 'bonus' money into savings.
Awaken the entrepreneur within your child
If your child already earns their pocket money, you can encourage them to seek ways to earn extra money. Recruit your friends and family to help by giving them tasks.
CommBank is committed to enhancing the financial wellbeing of young Australians. Through the Commonwealth Bank Foundation’s education program, StartSmart, we will help more than 275,000 students learn basic money management skills in schools and vocational education colleges around the country this year.