Day-to-day care
Every parent and carer knows that family life is full of decisions, big and small. As a carer, there will be some everyday decisions you can make independently, and some that need the approval of your caseworker or agency.
Managing pocket money, chores and savings
Pocket money
Getting pocket money helps a child or young person learn the value of money, how to use it and how to save it to buy something they really want. It helps promote a sense of independence and, through experience, teaches kids how to make responsible financial decisions.
The Care Allowance is intended to cover pocket money. Typically, parents and carers give their children $1 for each year of their age, each week. For a 13-year-old child, for example, this equals $13 in pocket money a week.
Pocket money is not to be used by the child or young person to cover the cost of meeting their basic needs such as clothing, toiletries, food or bedding. These costs are covered by the Care Allowance. Payment of pocket money should not be linked to the child or young person performing unreasonable duties.
Chores
Giving kids chores helps them gain life skills and a sense of responsibility. From the age of five, they can help with tasks like setting the table for a meal, making their bed or helping to tidy up around the house. Helping out around the house helps kids feel even more connected to the family.Children shouldn’t expect to be paid for this type of work. The types of chores you give to a child or young person should:
- be appropriate for their age and level of physical and intellectual development
- consist of simple tasks they can do successfully, increasing in complexity as their skills increase
- be rotated to provide a variety of experiences that help develop a range of skills
- provide an opportunity for you to work alongside the child or young person and praise them for a job well done to help
- instill a sense of pride, achievement and self-confidence
- not require too much time to complete
- not interfere with school, family, play, family contact and other activities
- not be used as a form of discipline or punishment.
Savings
Helping kids develop good financial skills from an early age prepares them for the financial challenges of adulthood. When you think they’re old enough, show your child some money management basics such as how to budget, spend, save and establish good money habits for life.
- Set up a bank account. Encourage kids to set up a bank account and use it to save their pocket money, birthday money or earnings from a part-time job. You may need certain identification documents to set up the account; your caseworker can help you locate these.
- Encourage savings. Your child or young person’s savings belong to them and their savings account should be in their own name. Help them see the benefits of saving for a goal. Remember that the child in your care does not have to pay for living essentials like clothes and toiletries; these are covered by the Care Allowance.
- Needs and wants. Teach kids to set goals and think about whether they want an item before parting with their money. Discuss the difference between needs and wants and encourage kids to think about this before spending.
For more information on teaching children about money visit the government’s MoneySmart website.