by Scott Pape
Jam jars for teenagers? Seriously?
Teenagers are going to graduate from the jam jars to bank accounts. However, all pocket money is paid and divvied up via the jam jars. I’m not trying to be cute—research suggests it’s the best way to teach your kids about money. Again, we’ll be covering that more in the next chapter.
How do my kids pay for bigger purchases or even online purchases?
You can pay for big-ticket items out of the savings account I mentioned above, and older teens will be opening their own accounts. I’ll go into all this in more detail in Chapter 1 (Part II).
I’m worried my kids will steal money from each other’s jam jars.
My five-year-old was onto this much earlier than I was—he put his jam jars on top of his bookshelf, out of reach of his little brother. But if you’re worried about pilfering pinkies, you can always lock the jam jars away for the week and bring them out on payday.
If the coins pile up in the jam jars you can exchange them for notes (use the coins for parking!), or you can use the account we’ll set up in the next chapter.
But with jam jars they’re not earning interest . . .
You can always deposit some of their money into the online account you’re about to set up. However, a much better payoff is letting your kids see the money building up in front of them.
I want to teach them how the world really works, and everyone uses ATM cards these days.
I agree.
And when they get a job they should definitely have their own account, ATM card and online banking. Even better, we’re going to show them how the banks rip people off with fees, and create a proud parent moment when they select a no-fee, high-interest account. Now that is worth doing.
However, for little kids and tweens we’re going to try to lay the foundations, and the best way to do that is the old-fashioned way, by seeing the money.
What about this new online app I’ve just heard about . . .
You are the killer app.
You’re going to create experiences and memories and family traditions that your kids will remember for the rest of their lives. You’re teaching your kids values. There’s no app that you can outsource this to. You just need to put down your phone and connect with them.
Now let’s talk about where your kids are going to get the money to put into those jars . . .
Three Jobs
The lesson we want to teach our kids can be summed up in four words:
‘Money comes from working.’
Sounds straightforward, right?
And that’s why the foundation of almost every book about kids and money is to track chores and pay money.
There’s only one, teeny, weeny problem . . .
If you’ve ever googled ways to teach your kid about pocket money, you’ll have run into a ‘chore chart’ that looks something like this:
If you’re not feeling heart palpitations looking at this chart, you’re not a parent.
It has 91 chores to mark off during the week (13 every day for seven days).
Ninety. One. Separate. Things.
The mind boggles.
Picture this:
Your kid came home on Monday with a stomach bug and gave gastro to the entire family, which lasted a full week.
Your kids are sick, and bratty, and smelly. Your partner is like a bear with a sore bottom (they’ve got the runs too).
How are those 91 chores going?
Look, you want your kids to work and earn money, absolutely. But you don’t want to set the bar so high that they have to complete 91 things in a week to get a passing grade.
It’s more likely you’ll grind it out for a few weeks and then wave the white flag, or your kids will wear you down (or both), and you’ll never do it again.
So what’s the solution?
Keep it simple—real simple
I’m a money man, and I can tell you there is absolutely NO WAY my family would last a week on a 91-chore plan. I wouldn’t even attempt it: I’d be setting up myself—and my kids—to fail.
So I have a ridiculously simple strategy for handling my kids’ chores.
To be honest, though, I hate the word ‘chores’, because it makes them sound like, well, chores. So in this book I’m going to call them ‘jobs’, which is exactly how it works for adults—you get paid for the jobs you do.
And here’s the best part . . .
Your entire strategy is boiled down to one simple line:
Kids have three jobs to do each week—and they only get paid if they do them.
It’s up to you what jobs you want your kids to do, and the payment for each.
But to help you out, here are some examples for how it might play out in your household:
Little kids (up to age 7)
With little kids, you’re basically just trying to get through the day without them flushing the TV remote down the toilet. In other words, you need to keep things easy. Something like:
1.Clean your room on a Sunday so you can start the week afresh.
2.Put the recycling out (Mummy sure drinks a lot of wine!).
3.Help put the groceries away (Daddy sure eats a lot of chocolate!).
Now, understand you’ll probably end up doing these jobs with your kid—and that’s okay!
It’s not about the job; it’s about the physical act of doing the job. (Besides, you’re going to clean up their mess regardless, aren’t you?)
Tweens and younger teens (age 8 to 14)
We live on a farm, so there’s always plenty to do: rounding up sheep, feeding the chooks, collecting firewood (I make no apologies for being the Steve Irwin of pocket money).
Your kids may not live on the land, but they do have a home. So put them to work!
Something like:
1.Clean out the car once a week (family cars are a cesspool of half-eaten Cruskits, old coffee cups and festy coins).
2.Put the bins out each week, and bring them back in.
3.Do basic yardwork, sweeping, or feeding pets.
Older teens (age 15 and over)
When your kid turns 15, they’ll often scream at you: ‘You treat me like a child!’
(Maybe you do, maybe you don’t. I’m staying out of it.)
And they are technically correct—they are on the cusp of adulthood. So they deserve a promotion . . . to their very own part-time job.
Let them know that they’ve now reached an age where they can legally work. Explain that you’ll continue paying them pocket money for household jobs while they apply for their first real job.
But if they’re not willing to apply for part-time jobs, you’ll cut off their pocket money.
And once they get a part-time job, they won’t need the pocket money (and you won’t be giving it to them anyway). After all, they can earn far more in just a few hours of work than they ever got in pocket money.
Hang on, how will they get a job?
Tell them they’re going to be the mascot for the local footy team (the Bendigo Badger!).
Actually, that’s a joke. Later on, in Chapters 7 and 8 (Part II), I’m going to give you the inside running on how your teen can land a part-time job—even with zero experience. I’ve spoken to some heavy hitters and got it all sorted for your teen.
No badgering required
Now, understand the secret sauce of this simple three-job plan:
Ideally, you want your kids to be able to do these three jobs quickly on a Sunday afternoon (even with gastro) and still earn their pocket money.
Yet of course, you’re the parent, so you know your kids better than anyone (well, apart from Mark Zuckerberg). So you should definitely take my suggestions as just that—suggestions. And soon you’re going to get the opportunity to tailor these jobs to your kids, your family and your situation.
For now, let me show you how to tie it all together and ‘lock in’ the link between working, earning, giving, saving and splurging in your kids’ minds . . . in just three minutes a week.
Three Minutes
I promised that the cornerstone of this book would be a plan so easy you could do it in under three minutes a week.
Well, here it is: a simple ritual that’s lazy parenting at its best.
You want easy?
Start the clock:
First minute (and I’m being generous here): Check your kid has done their three weekly jobs.
If they haven’t, yell ‘Do you want to get paid? Do your jobs!’
No need to get up . . . holler from the kitchen.
Second minute: Pay them. Count out the coins like a croupier, straight into their hand.
Third minute: Watch them divvy it up into the three jars. (The only rule? Every jar must get something.)
And that’s it!
Seriously, pat yourself on the back: in just three minutes you’ve reinforced the link between ‘working’ and ‘earning’ in your kid’s mind.
Hold your Bacardi, how do you know your kid isn’t pulling a Clive Palmer on you, and pretending they’ve done their jobs?
I’m glad you ask. Enter the Barefoot Scoreboard.
The Barefoot Scoreboard
Money is fast becoming invisible (my kids think I’m a wizard with a magic leather pouch that allows me to take stuff from shops with only a wave).
So as you lay the financial foundations for your children, you need to create a visual link between hard work and money. You need to turn down the tech.
This is where the Barefoot Scoreboard comes in. You can download it from the Barefoot Investor website (barefootinvestor.com/resources).
(Note: if you can’t be arsed photocopying this or printing it out simply write your own.)
Stick it on the fridge and tell your kids: to get paid, your jobs must be done—and crossed off on the Scoreboard.
As you can see, it covers a month, so you’ll need to print out a new one every four to five weeks. Or, simply laminate it and use a whiteboard marker to save on the printing.
Here’s the point: it’s important that your kids mark off their jobs themselves.
Why?
You want to give them the feeling of satisfaction that comes from achieving a win.
It’s the kid equivalent of clearing your email inbox.
So give them that win!
Everything you wanted to know about jobs (and pocket money) in one page
How much should I pay?
A good rule of toe is to pay $1 per week, per year of age. So a seven-year-old would get $7 a week. Or you can halve it to 50 cents per week, per year of age. Heck, you can even do a tenth of it for all I care.
It’s simply a visual aid for teaching values. And they get a pay rise each birthday! (But it’s your job to make them earn it—they should take on more responsibility in their jobs.)
Oh, and it shouldn’t need to be said, but it does need to be said: pay your daughters the same as your sons.
A 2018 survey of more than 10 000 schoolchildren by the University of Melbourne found that not only are girls doing more housework than boys but they’re getting less pocket money than boys.
And we wonder why women still get paid less for doing the same job, and typically retire with less than half the super savings of men?!
No excuses.
Should pocket money always be linked to jobs?
Abso-freakin-lutely. The only way to truly teach your kids the value of a buck is to make them work for it. You want to show them the joy of hard work. Now, if they miss a few jobs because they’re sick, that’s fine—just make a part payment for the week. (And let them catch up next week.)
Parents, repeat after me: ‘If you don’t work, you don’t get paid.’
Hang on, shouldn’t kids help out around the house for free?
Hell yeah they should help out. And that’s the next big topic we’re going to look at.
But first, I want you to do something important . . .
It’s time for a very special Date Night
Congratulations! You now have a simple, powerful plan for paying pocket money the right way—in just three minutes a week.
Soon I’m going to show you how to roll it out to your kids with minimal fuss . . . so you can officially get started on the Barefoot Ten, and the fun experiences awaiting you in this book.
But before we do that, we’re going to take a leaf out of The Barefoot Investor . . . and kick things off with an extra-special Parents Only Date Night.
There are two reasons I want you to do this:
Firstly, for most of us parenting is a team sport, so you’ll want to get your partner up to speed.
While you could get them to read this book, it’s easier to take them to their favourite restaurant (no kids!), ply them with booze, and cruise through the Parents Only Date Night ‘menu’ (see next page).
If you’re a single parent, bring along a friend or grandparent, or go by yourself (with me as company).
Secondly, you’re going to tailor this book for your family. I’ve tested the plan you’re going to read about on lots of parents, so I know it works—but you know your family best.
Your kids may be old, or young, or have special needs, or be unique in any number of ways. If you flick through the book, you can take a sneak peek at the amazing moments and challenges we’re going to create for your kids.
Though I’m sure you’ll find some things where you’ll say, ‘That’s not going to work for us . . . We’d actually do it this way.’
That’s okay!
On this Date Night you’re going to take the building blocks of this plan and tweak it to work long term for your kids.
Don’t worry, I’ve got the entire evening sorted out for you. All you need to do is book the restaurant.
BAREFOOT DATE NIGHT
PARENTS ONLY!
Choose somewhere really fancy for dinner. Ladies, get dressed up. Gents, comb your hair. It’s time to get your Barefoot Date Night game on.
The plan you’re putting in place will have a bigger impact on your kids’ future earnings than any money you spend on schooling, so go all out!
ENTRÉE:
Order a beer or wine. It’s time to see if you and your partner are on the same page when it comes to teaching your kids about money. You’ll work out whether you are by discussing these questions.
•Did you get pocket money as a kid?
•What was your first part-time job?
•What did you learn from your parents about money?
•What do you want to teach your kids about money?
MAIN COURSE:
Then go to page together, have a squiz at the Barefoot Scoreboard and pick out some jobs your kids could do to earn pocket money. You’ll let the kids choose their own jobs, but it’s handy to have some suggestions ready.
Finally, flick over to page and have a look at the Barefoot Ten, so you both know what’s coming up.
DESSERT:
Take out your phone while you’re at the restaurant and set the following two reminders:
1.‘Siri, remind me on Monday at 8 am to print out the Barefoot Scoreboard from the Barefoot website, or photocopy it from page’. (Print out one sheet for each kid—it will last a month.)
2.‘Remind me to see if we have enough jam jars and stickers in the house’ (if you haven’t already).
Get some dollar coins from the servo on your way home. Fill up the car and grab a Magnum as a treat. You want to have the cash ready to go for your first Barefoot Money Meal.
So you’ve got your partner slightly tipsy, and they’re on board . . . now it’s time to get the kids hooked.
How are you going to do that? The same way: with food!
The Barefoot Money Meal
Some families have healthy traditions . . . like all barracking for the same footy team.
The Pape family tradition happens every Christmas lunch when my father threatens to slip coins into the pudding for the kids to ‘discover’ as they’re eating.
Now, depending on how much Christmas cheer he’s
had, the results could range from diarrhoea to death:
Honestly, do you know how much bacteria there is on the average coin?
Does Dad even wash them before slipping them into the pudding (with a bit of pocket fluff)?
It’s always a tense time for Liz . . . ‘What if one of the children swallows a 20-cent piece? They’ll choke!’
Bah! Merry Christmas from the Papes!
Well, today we’re going to create a family tradition that you’ll never regret: the Barefoot Money Meal (it’s like a Date Night, but for families).
This little meal will do more for your kids’ financial future than a fancy $35 000-a-year private school, and it’ll provide you with some of your most precious family memories years from now.
Drip, drip, drip
If there’s a smell that defines my childhood, it’s rissoles cooking in a frying pan.
I can still hear the sizzling and spitting.
And I can see my mother draining the fat from the pan into the drip pot.
Wait . . . what?
Uh-huh. That’s right. My mother was a recycler—of fat.
Yes, fat.
Look, I’ve managed to block this out of my mind for 25 years, but I remember seeing Mum drain the fat drippings from her cooking into a big metal tin which she kept in the pantry to harden and use later.
And every so often, my sister and I would lift the lid and stare at the murky, hardened fat—daring each other to touch it.
Looking back, there was enough cholesterol in that tin to kill a donkey.
Was cooking oil that expensive in the eighties? Or was Mum trying to infuse the remnants of last Thursday’s roast lamb into this week’s bangers and mash?
I’m pretty sure it was the former, because in all the years I’ve been watching MKR I’ve never seen anyone bust out a drip pot. (And let’s be honest, Paleo Pete is all over caveman cuisine, so if he’s not suggesting contestants serve up bread and dripping then my guess is that dripping is done, baby.)