• Most parents link pocket money to good behaviour or help given
• More than a quarter of children don’t receive pocket money
• 7 to 10 year olds earn $8.50 in pocket money each week and 11-14 year olds earn $14.30
• Early conversations with children critical to teach money smarts

Research reveals Australia’s attitude to kids’ pocket money.

A survey by Money Smart Week sponsor Australia’s largest life insurer TAL reveals that, far from living in a “culture of entitlement”, more than half of Australian children do jobs around the house for their pocket money.

In addition, more than a quarter (29%) do not receive any pocket money, while less than one in ten children receive pocket money regardless of whether they help around the house.

TAL spokesperson Jim Minto said: “No matter what the arrangement is, the important point is that families have conversations about the value and importance of money to help achieve financial wellbeing.”

The survey, undertaken by TAL ahead of Money Smart Week which runs from 1-7 September, looks at two groups of children – ages 7 to 10, and 11 to 14.

It reveals 52 per cent of 7 to 10 year olds and 55 per cent of 11 to 14 year olds need to help around the house to earn pocket money. However, many parents (23%) also pay pocket money as a reward for good behaviour.

“While it depends on individual families about the time or amount to pay in pocket money, the majority surveyed link pocket money to either work done or good behaviour. We support MoneySmart Week to help Australians of all ages make the best decisions about money. This includes building, growing and protecting their wealth.

MoneySmart Week Campaign Director Rebecca Glenn said the issue of pocket money was often a difficult one for parents and children, but an important one.

“The financial habits we form in childhood and our attitude to money can have a profound impact on our financial wellbeing. Many of us can remember the discussions we had with our parents about pocket money, the agreement to do something in exchange for that money and then deciding how we were going to spend it. For parents, there are free tools to help them with these conversations.

“The Start Early Challenge, developed by MoneySmart Week, helps parents and children with conversations about how to set and achieve savings goals.

“These discussions may not always come naturally and we encourage parents to have them and to help their children take the challenge.

Parents can find more information at www.moneysmartweek.org.au.”

And those parents wanting to check if they have sufficient protection can take the Australian Financial Protection Quiz.

Table 1: Does your child receive pocket money

Table 2: For those who receive pocket money, average amount received each week 

The post Should pocket money be entitled or earned? appeared first on AdviserVoice.

Money origami 1.

Housed in the TAL building at 363 George Street, Sydney, an origami display, made out of Australian currency, has been put together by Australia’s specialist life insurer, TAL, as part of MoneySmart Week to illustrate that it’s not how much money we have, it’s what we do with it that matters.

The origami display was a great way to engage staff and others about the importance of being money smart.

As a Money Smart Week sponsor, we wanted to do something to help raise awareness of financial literacy as well as awareness of what we are passionate about, financial protection.

Money origami 2.

With the tagline “It’s not what you’ve got , it’s what you do with it” we thought the origami with paper money was a nice tie-in to the overall theme.

TAL’s own Dai-ichi Life Liaison Executive Toru Nagashima dusted off the origami cob-webs and joined our origami artist in doing some paper folding. He produced an exquisite crane (bird). There were many onlookers and the CEO of TAL Direct John Hoyle also joined in the fun.

Click here to read more about the display.

Toru Nagashima

The post Money Smart Week – It’s not what you’ve got, it’s what you do with it appeared first on AdviserVoice.