Manage kids’ pocket money with a joint account
Giving your child pocket money is an excellent way to teach them the value of money. When you deposit it into a joint account, which comes with its own kid’s bank card, you also teach them about the world of banking.
Giving a child their own money supports their goal setting, independence and saving. It also teaches them important life skills. It can help them make money decisions and consider the rewards and implications, whether it’s spending now, saving to spend later, or saving indefinitely.
A joint account for your child’s pocket money
Instead of giving your child cash, deposit the pocket money into a joint account which your child can access easily to check their balance and learn about banks, as well as abstract concepts such as interest. African Bank has an innovative family shared banking solution called MyWORLD, which allows a parent, as the primary account holder, to have up to five Power Pocket accounts to share with their kids and other close family members or friends. What makes it so great is that each Power Pocket has its own “owner”, called a User, with the primary account holder as the monitor.
A Power Pocket is a separate account linked to your Primary MyWORLD account. This account has its own unique account number and children can get their own debit card and PIN. Parents can use Power Pockets to safely transfer money. As it is linked to your Primary account, you’re able to see how your child is saving and spending and you can then guide them accordingly.
How often and how much
This will largely depend on your budget and what your children are expected to use their pocket money for. Is it for apps, ice cream and data, or is it for bigger toys that you don’t feel you should be buying? This will dictate how often and how much you give.
Chat to parents in your circle to assess what the going rate is, to give you a base guideline, and take it from there. Do what suits you, your budget and your value system.
Many parents wonder if they should be paying their kids for chores around the house, such as feeding the dogs, helping with the dishes, or cleaning their rooms. However, it’s advised that behaviour that you’d want your child to adopt as part of their own value system should not be connected to an incentive such as pocket money. However, a “wage” or “pocket money” can be given for tasks that you might otherwise have paid someone else to do: for example, washing the car, or helping in the garden.
Tips to help your kids save
Help them set a goal: If your child is saving for something, help to work out what they need to do achieve that goal, whether it’s the amount of money they need to put away, or the timeline required to reach the goal.
Teach the difference between a want and a need: Knowing the difference will potentially help kids to avoid spending too much on “wants”, and more on “needs”.
Lead by example: If you can show your kids your good savings track record and how much interest you’ve earned, or how much you’ve been able to achieve with your savings, then your kids can see that it’s achievable and be in a better position to follow your lead.