Pocket money is a good way to help children learn to make their own decisions and live with them. how much to give will depend on age, maturity, responsibilities and the family’s financial situation.
Give the pocket money in small denominations to encourage children to put some aside as savings.
Consider linking pocket money to chores. Pocket money must be earned the same way Mum or Dad earn money by going to work.
Give advice to children but let them make their own spending decisions and mistakes. Don’t scold for mistakes, instead help them to see the error of their ways and learn for the future.
Encourage children not to buy on impulse but to think about other options which they can spend their money on.
Consider rewarding children for regular saving (perhaps topping up savings).
Help children to to identify short term goal to save towards.
Make savings interesting, Develop a savings plan or calendar to show when and how the goal can be reached or help children to hang up a picture of what they’re saving for.
Let children learn that they have to save up to buy something they really want. Don’t let them get into the habit of running to you every time they need more money.
Explain how dividends and interest work. When they put their money in a savings account, these savings earn more money at the end of the year.
Encourage your child to join our school savings scheme” Sammy Stamp’s”. Many credit unions throughout Ireland run school credit unions- an opportunity for children to learn how to save on a regular basis. The focus is not on the amount saved, rather it is on develop a habit of regular saving.
Give children a piggy bank to help them save or better still, bring them down our local credit union to open a savings account.
Killarney Credit Union offers a schools savings scheme in the following national schools:
- Presentation Monastery
- Gaelscoil Faithleann
- St Olivers, Ballycasheen
- Realt na Mara, Tuosist