Pocket Money Loans

Making a pocket money chart

You do not need an app. A sheet of paper stuck to the fridge does the same job, and there is decent evidence that writing things down by hand is the part that works.

The purpose of a chart is not record-keeping. It is that a running total makes money visible. Money you cannot see is very easy to spend; money sitting at £14.50 on a piece of paper, three weeks into saving for something that costs £20, is much harder to spend.

The five columns you need

Rule up a sheet of A4 in landscape. Five columns, about fifteen rows:

DateWhat happenedInOutTotal
1 SeptPocket money£6.00£6.00
3 SeptComic£3.50£2.50
5 SeptWashed the car£3.00£5.50
8 SeptPocket money£6.00£11.50

That is the whole system. The "Total" column is the one doing the work — everything else is just how the total gets there.

Try this

Add a horizontal line across the chart in a bright colour at the amount being saved for, with the goal written next to it. Every entry either moves the total towards the line or away from it. Children who would happily ignore a number will often not ignore a line they can see themselves approaching.

Three variations worth trying

The three-pot version

For younger children, replace the single total with three: Spend, Save and Give. Each week the pocket money is split between them — a common split is 50/40/10, but any split works as long as the child does the dividing. Three jam jars work just as well as three columns, and are more satisfying.

The countdown version

Instead of counting up from zero, count down from the price of the goal. Starting at £20 and crossing off to £17, £13.50, £9 gives a much clearer sense of progress than watching a total creep up. Same maths, better feeling.

The two-week rule

Add a box at the bottom headed "Things I want". Anything over about half a week's money goes in the box first with the date. If it is still wanted two weeks later, it can be bought. A remarkable proportion of things never make it out of the box, which is itself the lesson.

Who fills it in

They do. Every time. A chart maintained by a parent is a parent's chart, and it teaches the child that someone else keeps track of their money — which is precisely the opposite of the intended lesson. Expect it to be messy, occasionally wrong, and abandoned for a fortnight. That is fine.

When to stop using it

Charts suit roughly ages six to eleven. After that a notes app, a spreadsheet or a banking app takes over naturally, and pushing the paper version past its welcome makes the whole thing feel childish. The habit is what you are keeping, not the format.

Questions people ask

What should a pocket money chart include?
Five columns is enough: the date, what happened, money in, money out, and a running total. The running total is the column that does the real work, because it makes the money visible.
What is the three jars method?
Money is split between three containers labelled Spend, Save and Give each time it arrives. A common split is 50% spend, 40% save and 10% give, but the useful part is the child doing the dividing themselves.
At what age should a child track their own money?
Around six is when a simple chart starts to make sense, and most children outgrow the paper version by about eleven, when a notes app or banking app takes over.