June 27, 2026 • 37 mins
Founder of Crayon Stephanie Pow joins Tim Beviredge on Parent Squad to discuss how you should monitor your kids' pocket money. When's the right time to get them started? And how much control should parents have to veto kids' purchases?
But is it all up to parents to teach kids about cash? Or do schools have a responsibility to help out.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks, EDBA,
(00:30):
Change and.
Speaker 2 (00:31):
The Marrow.
Speaker 3 (00:34):
To Jason say, well, well see.
Speaker 2 (00:41):
Another and welcome back to the Weekend Collective. I'm Tim
Beverage and welcome in. Welcome back. Whichever wad is you've
just tuned, and you might have just chuned him because
you've been watching the football. We will have seen that
we New Zealand lost to Belgium five one, and I mean, look,
(01:01):
we didn't look quite winning it at any stage really
except the insolation prize being a Lajah just did score
another magnificent goal, and good on him. It's just that Belgium.
Belgium scored one almost immediately after we got it. We're
all celebrating. Oh oh, they've scored another one to make
it four to one, and then five to one, just
to spoil the party of those bloomen Belgians. Anyway, this
(01:25):
is the Parents Squad and we're gonna have a chat
about kids and money and pocket money and the money
that they earn and how much as parents you should, could, would, will,
can all of those verbs. How much control do you
or can you have or should you have over your
children's money. It's one thing, you know, I guess if
(01:47):
you give your children a couple of dollars and they're
just toddlers and they can you know that you've given
them that money, And I would imagine you're you probably
know they're going to spend it on sweets possibly, But
when they get a little bit older, they might actually
come across a bit of extra money. My daughter did
a babysitting gig for her ballet school, and she ended
(02:07):
up with quite a bit of money, to the extent
that we thought it was time to open her a
bank account. And I'm actually embarrassed to say this, but
I don't know exactly what rules we put in place,
because my wife sort of looked after it all. So
that's just a bit of a confession in away from
me that I suddenly thought, oh my god, I should
have called called Annie app and found out what we're
(02:29):
actually what rules we've put in place. But what rules
do you have if your children earn a bit of money.
I've got one of my daughters does a bit of
umpiring on the weekend during the week for netball, and
she's you know, she's sticking thirty or forty dollars I
wouldn't say it's in her bottom drawer. And in fact,
I don't even know where that money is going. God,
I really am not doing I'm dropping the ball here.
(02:50):
But anyway, what should we do with it? How should
you let your kids manage that money if they earn it?
Should they just be able to spend it on what
they want? I don't I would say the answer would
be no. But what are the limits? Anyway to talk
about this? She is the founder of crowns as Go
crown dot com, which is a website that basically helps
people sort out how they should handle their money. And
(03:12):
her name is Stephanie Powell and she is with me. Stephanie, Hello,
how are you hi?
Speaker 4 (03:17):
Tim?
Speaker 3 (03:17):
I'm great, Thanks, thanks for having me back.
Speaker 2 (03:19):
You're looking very bright ear and bushy tailed for someone
who's a soccer fan who has actually probably been absorbing
the fact that we we I mean, it was we
wanted to do better, didn't we?
Speaker 3 (03:29):
It was always going to be tough. Belgium's a top
ten team.
Speaker 2 (03:31):
But yes, yeah, well you see Iran has beaten Egypt
and they're going through. So the team we drew against
is going through. Oh that all smart, won't it? But
I guess our chance was against those other two teams.
Speaker 3 (03:43):
Sorry, I've just got to correct you ran ended up
having that winning goal disqualifies.
Speaker 2 (03:47):
Oh sorry, sorry my producers. I think you've just said
that on air, haven't you locked? Did you know you've
all heard that? So, yeah, they had their winning goal disallowed,
so they're not going through. Okay, right are they going through?
Maybe confusing one in this world? Okay, we won't talk
any more soccer. Let's money. Hey, So stephan Stephanie, you've
got a couple of children. I'm gonna stop saying kids aged?
(04:13):
How old are How are your children?
Speaker 3 (04:14):
Seven and almost five? So I'm a little bit behind you.
Speaker 2 (04:17):
Tim, Okay, and are they financially aware, literate on top
of things? Haven't got a clue.
Speaker 3 (04:23):
I'm trying, I think, like a lot of parents, I've
got some interesting stats to kick us off. So one
in three keyweeds rarely or never you to pull.
Speaker 2 (04:32):
That microphone a bit closer towards you. There we get.
Speaker 3 (04:35):
Let's try that again.
Speaker 2 (04:35):
There we go.
Speaker 3 (04:36):
One in three keyweds rarely or never talk to anyone
about money, even close friends or family. So it's something
a lot of us are very uncomfortable talking about.
Speaker 2 (04:46):
One in three.
Speaker 3 (04:46):
One in three?
Speaker 2 (04:48):
Ah? Is that because we're all petrified about our terribles
financial situation.
Speaker 3 (04:53):
I think some work sometimes a bit embarrassed or it's
seen as being impolite.
Speaker 2 (04:58):
Gosh, oh okay, yeah, that does surprise me. One in
three don't, okay? Right care yep?
Speaker 3 (05:06):
And the University of Cambridge found that many of our
core money habits and attitudes are formed by the time
we are seven years old.
Speaker 2 (05:14):
Oh okay, So you're only just going to squeeze in
with teaching your kids a bit about money.
Speaker 3 (05:19):
It's never too late, obviously, but I think it's to say,
even if we never have an intentional money discussion with
our kids, they are going to pick it up just
from what's happening around them.
Speaker 2 (05:30):
What's your theory on money personalities? Because I've got two daughters,
and I have a suspicion that they're both going to
have quite different approaches to money, and they live in
the same household, they observe the same good or bad
spending habits of their parents. And how much of it
(05:51):
can you actually teach them? And how much is just
personality that you know, I like to have nice things
and i've got money, I'm going to spend it. Versus
the natural squirrel.
Speaker 3 (06:00):
Yes, the nature versus nurture argument. So I think the
research shows that about a third ish of our money
habits are nature, but there's a lot of that nurture
can shape.
Speaker 2 (06:11):
Yeah. Still, so what lessons do you want to teach
your kids about money? Children about money?
Speaker 3 (06:15):
So mine is still quite young, but the couple of things.
One is just getting them to understand the concept of money.
So much in our world now is not physical, so
most of the time they're seeing me tap and go
as opposed to handing over cash.
Speaker 2 (06:27):
Oh yeah, yeah, carry on.
Speaker 3 (06:29):
So that's the first bit. So we do pocket money
and we have physical money. Actually it's annoying I have
to go to the bank to get coins out, but
I want them to touch money and to think about
it in that way. And then at this early stage
for them, it's getting them to understand splitting up their
money so you don't spend everything that you earn. We
have clear jars and we've got spend, save and give,
(06:50):
and so they portion it out between those jars. So
at this really young age, you know, kind of five
to seven, it's just getting them to understand, you know,
how when you hopefully get a paycheck when you're older,
how do you split it out?
Speaker 2 (07:01):
Do they understand the concept of saving because they know
what money does when you spend it, you get stuff
that you want. Do they understand just the philosophy? I mean,
it sounds like a dumb question, but I don't know
if it is, because it's a simple concept. It's like,
why can't I have that jar there? Why not? But
I want this?
Speaker 3 (07:19):
Well, sometimes it's around setting a goal so you don't
have everything right now that you need to buy the
thing that you want. So we're going to work towards that,
and we can even draw it out because again, my
kids are still quite young, but getting them to work
towards something and trap their progress can be quite motivating
as well.
Speaker 2 (07:36):
Yeah, actually that I think what you touched on with
cash is a big deal because I think that a
lot of adults if we had to hand over the
cash every time we did a transaction, that would slow
us down a bit on our spending. I'm just wondering
even for adults, that's not a bad one for mom
and dad.
Speaker 3 (07:53):
But absolutely the research on this is fascinating. So there's
a concept called the pain of pain. It's the part
of the brain that lights up with physical pain and disgust.
It's the same part that life up when you hand
it for cash. Really, yes, and so there's been some
fascinating research on this. One study found that people spend
twelve to eighteen percent more on a credit card compared
(08:15):
to using physical cash.
Speaker 2 (08:18):
That's is that, as a would would there be a
way of protecting yourself against that sort of lazy impulse
to spend more? How I mean, because I am quite
conscious of what I spend. I like to think generally,
I'm quite good at not spending money I don't need
to spend. Although you know, there was a sale the
(08:38):
other day, I think on some Bow's headphones and I
almost bought a poor pair of headphones that I actually
didn't need it, And the only reason was because they
were on sale, and I thought, well, this need a sale,
Maybe I'm going to want a pair of these, And
I didn't because I did. I do feel the pain
of spending, even though it's on the credit card. So
I don't know, is there a way of giving you
(08:58):
that sense of pain just through the digital transactions?
Speaker 3 (09:01):
I think sometimes it's just slowing yourself down. So yeah,
I would I put my hand up and say I'm
a spender. And so one of the things I've had
to do over time is just I have a rule
for myself that I don't buy fashion items, for example,
on the spot. So if I want it, I can
come back, or I can add it to the cart
and think about it, but I don't buy it on
(09:22):
the spot. And I think sometimes just putting a little
bit of friction between you and your transaction on you
can help you out. Hasn't fully slowed me down, but
it's definitely helpfully.
Speaker 2 (09:31):
Just makes me laugh because your businesses and helping people
manage their money, and it's just surprising to hear you
say I'm a spender. I like to spend it, and
I have to put these rules in place for me.
Bravo you. That's almost like I have that rule with
seconds for the kids because if I cook something well,
I made something delicious the other night, and I'm singing
my own praises there. Sorry, Anyway, there was something nice
(09:53):
for dinner the other night and the kids ate, you know,
they finished off, and they see, can we have some more?
And I said, I just want you to sit for
five minutes first, and it's is it a bit like
that with spending? You just put an enforced delay and
in five minutes time, oh.
Speaker 3 (10:09):
Maybe I don't give yourself twenty four hours or something
like that. I remember one financial educator she told me
her son wanted to buy something by a toy and
she made him go to the atm withdraw the money,
and by the time he walked from the atm to
the store, he changed his mind about handing over that cash.
Speaker 2 (10:26):
Of course, that is a good lesson to teach kids.
I wonder if we have we need to do that
with ours. They've earned The funny thing is they've earned
it in cash, and we make them go and put
it in the bank. And I wonder if just handling
the cash and putting it in the bank gives them
I don't know if it's the same as it you've
seen it go in, but when it comes out, it's
just a digital transaction, boom done.
Speaker 3 (10:47):
Yes, the benefit of the bank is hopefully they're earning
some interest on that money. So that's another concept you
want to get your kids to understand, is if I
leave it alone, it will my money will earn money
and I don't have to exchange my labor for.
Speaker 2 (10:59):
That, so do you? I mean, I don't know how
much you'd think ahead about this, but how much control? It?
Much control do you think children should have over their
own money? As an ethical point of view, let's say
once they're old enough to actually do a bit of
babysitting and do a maybe even have a part time job.
How much control or yeah, control, I don't like the
(11:19):
word control. I was looking for another one. But how
much influence? There we go, there's a bit of word.
How much influence would you expect to exert yourself?
Speaker 3 (11:27):
And I caveat this by saying, my kids are still young, right.
Speaker 2 (11:30):
Fine, I'm just thinking if you're thinking ahead though.
Speaker 3 (11:32):
Yes, I think you want to set some or I
would want to set some boundaries in terms of what
is saved and what is spent. So maybe at a
high level we agree on a split of the money
that comes in. But I think you've got to meet
your own mistakes. I've made plenty. I'm sure you have
to think everyone has made mistakes and that's how they've
learnt in terms of managing their money. And wouldn't you
rather your kids do it? When they're younger and the
(11:54):
stakes are lower and they realize, you know that, oh,
actually that's not a great purchase. So I wish I
hadn't done that rather than as an adult with a
credit card.
Speaker 2 (12:02):
Yeah, I guess I would probably think when it comes
to food, I wouldn't want them spending it on crappy
food all the time. And I don't know how i'd
exert my influence on that one, because also kids like
to treat. But if I had a child, and I
don't think if they were going to spend one hundred
dollars on sweets and lollies and stuff like that, I
would be not be I wouldn't be too keen on that.
(12:24):
And I think maybe part of the important thing is
to have a relationship with your kids where they'll actually
tell you what they want to do with their money
and just say, look, if you want to go and
buy something, just let us know what you're thinking of,
just in case we've got an opinion. Well that sound
of a posse.
Speaker 3 (12:37):
But also it's probably about helping them understand what do
they value with your money. So I sit down with
adults and I do budgets with them all the time,
and for me. I don't come in with a prescribed
X amount on this, but it's more actually, are you
really clear on how you want to spend your time
and money and therefore is your money going towards that?
Because often if you sit down and you look at
(12:58):
where your money has been going, there's sometimes a misalignment.
And I think it's helping your kids discover well, yes
I could buy one hundred dollars worth of sweets, but
also there are other things I could do with my
money and making them see that there are bigger options
out there.
Speaker 2 (13:10):
Do you give your kids pocket money?
Speaker 3 (13:11):
I do.
Speaker 2 (13:12):
Do you they have to do something in return for it?
Speaker 3 (13:14):
Not? At this stage, and I know it's controversial with
pocket money, everyone's got an opinion, but I think the
research shows that kids being able to actually learn through doing,
you know, and it doesn't have to be a ton. Again,
mine are still quite young, so at this point I
just want them to understand we split money and it grows, etc.
But I think as they get older there should be
opportunities for them to earn extra. So there are some
(13:36):
things you should do just because you're a member of
this household. Unpack the dishwasher, help with the laundry. Those
things I don't believe you should be paid for because
we all do that as part of being in a home.
But I think things like if you go mow the
lawn or something a bit extra as they get older,
that's an opportunity for them to earn a bit more.
Speaker 2 (13:51):
If they don't do their bit around the house. Does
pocket money get sacrificed or is they two totally separate things,
So you're not really because as soon as you sacrifice
it's a trade off, we are paying you to unload
the dish washer.
Speaker 3 (14:03):
That's right. I think it's a different conversation for me.
Speaker 2 (14:06):
Yeah, fair enough. I eight hundred eighty ten eight. What
are your rules with your kids on money and when
do you let them just make their own spending decisions?
Obviously probably when they leave home would be another one.
But then again, you might have you might have set
up a trust for them where they can buy their
first time if you're a bit flash, and you might
have a say on what they would do with that
money and how they spend it. But I eight hundred
(14:26):
eighty ten eighty. But it does time to the question
around pocket money, and you know how much you give
them do you let them spend the pocket money that
they have as they want to, or do you try
and actually say, as Stephanie was saying, you know, a
little bit goes into savings, a little bit goes here,
and here's something you can spend on something you want.
I wait, one hundred eighty ten eighty. Let's take some calls,
shall we? Yes, that's a good idea, Pete, Hello.
Speaker 4 (14:50):
Hi, Kim Good a curist deep cure.
Speaker 2 (14:56):
What have you got to say? Sorry?
Speaker 4 (14:58):
I just wanted to relate pocket money, begady when I
spring myself. Sorry, I did. And we were doing now
oriented things like learning martial arts. You know, I bought
my book one time of the Red one hundred and
fifty moves in a different separate moons, and I see
(15:21):
three three moves. Even movie you've learned, I'll pay you
a dollar and he mean through multl book box and
the costmere paper. But he didn't in toowards the moments
he showed me which movie he learned and demonstrated to me.
So you gave a.
Speaker 2 (15:39):
Reward for self improvement sort of stuff in the martial arts.
Speaker 4 (15:43):
I gave him a dollar for every news And what
did he what did he do with the money, Well,
he just mean it wasn't it was only a dollar?
Speaker 2 (15:52):
But move, Well, it depends.
Speaker 4 (15:54):
How old is my grand my grandson is. I'm taking
them through the same process, increased the move from one
dollar to two dollars, keeping up of the finance or
times and in place.
Speaker 2 (16:08):
It could cost you a lot of money. Pay it
could cost you a lot of money, mate, But that's
an interesting one. Actually, give you self defense, martial arts, moves,
learning a few things.
Speaker 3 (16:19):
I've heard of parents incentivizing for study or things like that,
or reading books.
Speaker 2 (16:23):
What do you think of that? Okay, let's put aside
Pete's call on martial arts, which is a quirky sort
of arrangement. But see, for instance, my I don't want
to put money at the center of everything. So for instance,
my girls love playing sport, and I would never reward
them for doing stuff that they should simply do because
they want to be better at what they want to do.
And I guess that's a philosophical thing, but yeah, I
(16:45):
think it.
Speaker 3 (16:46):
Comes down also to the type of kid that you have.
Some kids are perhaps motivated in that way.
Speaker 2 (16:51):
What if the if they're not motivated to play the sport.
Now that's a god. That's a whole different parent in
conversation altogether. Let's take some more calls on this, and
I actually tell you what we will take the break.
It's twenty three and a half past five. We talk
about children, money, parental control. How do you sort it
out when your kids have got a bit of money finally,
and they could if they were left to their own device,
(17:12):
to just spend it on whatever, or do you actually
put rules in place eight hundred eighty ten eighty text
nine two nine two Stephanie Power Power? Should I say
not power and not be confused with the Hollywood actor?
I think Stephanie Powers. I think it might have been
actually now I think of it. Stephanie Powell Pow is
our guest. She is the founder of go crown dot com.
(17:34):
We'll be back in just a minute. News Talk said
b News Talk said, be. This is the Parents Squad.
My guest is Stephanie Powell. She's the founder of go
crown dot com. And we're talking about kids and money
and how you manage it and you know, what are
the rules in your household and also other ideas around
teaching them around the value of money and what it's
(17:56):
worth than Stephanie was saying that, you know, the just
even for people, grown ups, people kids of people. What
am I saying even for grown ups? Just the idea
of Stephanie Handler and cash is a great reminder of
what money's worth when you've got a hand over the readies,
as they say, and.
Speaker 3 (18:12):
It's harder for kids now there are even more ways
to pay than there were when we were growing up.
You know, there's buy now, paid leader, contactless, subscriptions, lots
of different ways that we didn't have to contend with
as children.
Speaker 2 (18:24):
Just before we got our next caller that there's a
great text here says my girl was labels only, so
she would only buy clothes. Obviously that were the labels
to have. I got fed up and at twelve years
gave her one hundred dollars and left it the mall
to buy her own clothes. She came home with one
labeled item and several glassons items. Lesson learned never had
(18:46):
to shop with her again. She opt shops now and
there's a canny shopper. Now that's a risky game. You say, right,
I'm not buying stuff, here's the money, you go and
do it. And they just come back with one expensive
outfit that's not really good for anything.
Speaker 3 (19:03):
But then it's on them. I think as a parent
you can at some boundaries. So it might be that
you will give you a clothing allowance for the year,
and it's on or for the term, and it's on
you to manage it. And if you buy one nice item,
well that's it. We're not coming in to bail you out.
Speaker 2 (19:17):
Fair enough. Absolutely, I'm with you. Let's go to our
next caller. So I'm not sure I'm going to pronounce
your name right?
Speaker 5 (19:23):
Is it MONARCHI monarchy, that's the one. How are you doing?
Speaker 4 (19:26):
Team?
Speaker 2 (19:26):
Good mate? How are you?
Speaker 4 (19:29):
Yeah?
Speaker 5 (19:29):
Not too bad? Thank you. I just jumped in the
carr and just started catching the conversation here and just
wanted to put my own two cents.
Speaker 4 (19:35):
Then.
Speaker 2 (19:35):
Sure, it's exactly what You've come to the right place, mate, Yeah.
Speaker 4 (19:41):
Good.
Speaker 5 (19:42):
So I've got three kids five, almost seven and almost twelve,
and I've been paying them pretty much, as you know,
as their job is to go to school. So ever
since they were in daycare. You know, they make ten
bucks a week because they go five days a week
to two dollars a day and then when they've come
(20:03):
up to after prime school, we've we've bumped it up
to twenty bucks a week. Fortunately we're in a position
that we can do that. But we don't give them
pocket money, you know, as the co host said, for
you know, just doing jobs around the house, like it's
an expectation that you in your room do dishes, dishare
shit and whatnot. That's just part of running a household.
(20:25):
So for them, their their job like mum and dad,
you know, we get paid to go to work, so
they get paid to go to school. So that's a
bit of an incentive for them to stay motivated and whatnot.
Speaker 3 (20:35):
And what can they do with those the funds that
you give them.
Speaker 5 (20:39):
So three quarters of those funds go straight into the
ki we saver and then the other quarter of those
funds just go into the nominal account that obviously we control,
and they can do little jobs around like you see
the lawn wash the car for a bit of extra
just to go and do whatever, you get some candies
or whatnot. But for big ticket items we always say
(21:03):
we'll match it, you know, whatever it is. If you
can pay half, we'll pay the other half.
Speaker 2 (21:07):
So what's what's their attitude towards school just as a result.
Of course, what you've done is build up a habit
that they go anyway, What are you stuck with having
to pay them to go to school or what's the
what's their attitude towards it?
Speaker 5 (21:24):
No, well, I mean I'm quite lucky. Our kids are
quite motivated to go to school anyway, you know, my
my young fellow, you know almost seven. Developmentally, you know,
it's probably not as motivated in terms of you know,
is reading and writing and whatnot that we do all
that sort of stuff at home too, So it's coming along.
(21:46):
But their attitudes to school are you know, pretty high anyway.
We value education in our family.
Speaker 2 (21:53):
So yes, it's such an interesting that's good. That's fascinating
because there's a part of me that sort of thinks,
I don't think I want to pay my kids to
go to school. But then that's sentence you just said
as about you put a value on education. That's important
for so it's it's it's an interesting one. Was it
was it an easy decision for you to do?
Speaker 4 (22:12):
That?
Speaker 2 (22:12):
Was it just a brain wave? You went, you know what,
we're going to pay the kids to go to school.
They're never going to miss a day in their.
Speaker 5 (22:17):
Lives, a little bit of A and a little bit
of B. You know, they get sick and they missed
school days. It's like, you know, Mum and dad, you know,
might need to take a sect day here and there.
So they still get paid whatever it is, you know,
and that teaches them, you know, the value of money,
the value of education, the value of you know, that
(22:39):
self respect of you know, putting their best foot forward
as well. So yeah, yeah, it's not a hard thing,
you know, Like we talked to a lot of our
friends who are quite surprised that we do that. So
I thought, I just put it out there to the
to the world, and yeah.
Speaker 2 (22:53):
Good idea. That's that is a fascinating idea.
Speaker 3 (23:00):
I like that three quarters of the money is going
towards the Kiwi Saber too, so well, that's.
Speaker 2 (23:04):
What I mean. It's like he's giving them a bit
of incentive. And because it's like pocket maybe the kids
assume that they're getting the money as pocket money anyway,
but he's put a value on it, and it's because
we value education. So it's sort of it's a mixture
of lessons there. I can't I can't work out what
I reckon that.
Speaker 3 (23:20):
One, But I think what it does show you to
him is everyone's got such different attitudes and relationships to
money and what we pass on to our kids too. Yeah,
there's no one size fits all with this.
Speaker 2 (23:30):
No, no, I think. I mean I wouldn't have paid
our kids to go to school. But it's yeah, I'm
a bit for I think he won me over with
the idea that we value education and they're telling the
kids that, and that's their little lesson and just happens
to be how the money transacts with pocket money. And
it's a fascinating one, that one.
Speaker 3 (23:50):
And the idea would be that it mimics salary in
a way.
Speaker 2 (23:53):
Yeah, yeah, that is a fascinating one. I don't really
know where to package that one. Good on the monarchy.
That was a good call mate, fascinating idea. Let's go
to Linda.
Speaker 6 (24:03):
Hello, get high there. Good Hello. So what I'd like
to say is like, it's probably given my age away.
But when I was at school, we all had the
AFB saver accounts and that gave you the compounding interest.
(24:23):
Everyone took some money to school. It doesn't matter how
much it was, but you were saving. From the word go. Yeah,
and it gave you the value of saving men And
did that stick with.
Speaker 2 (24:35):
You throughout as a result of that first experience.
Speaker 6 (24:38):
I really think it has.
Speaker 1 (24:40):
Yeah.
Speaker 6 (24:40):
I think everyone did it. Everyone saved somethink, whether it
was a small amount or a big amount, you saved somethnk.
Speaker 2 (24:48):
Yeah. Actually, is there a modern de Quillander that Stephanie.
Speaker 3 (24:53):
I don't think so much in terms of a bank
account at schools anymore, but I remember having a I
grew up in Australia, but Commonwealth Bank they did a
little checkbook and I had one of those as a kid.
Speaker 2 (25:03):
There was a post office, there was a post offic
savings banks scheme. I think we got ten cents in
it at the start from the government. Actually, it's coming
back into some of the election policies, say fifteen hundred
bucks I think.
Speaker 6 (25:16):
Is I was thinking about that's her and I thought
that would be a good way for them to actually
start it off by having like the ASP account where
you all have money, you take it to school. Even
if it's only a few cents, it dosn't matter. You're
still putting it in there. You see the value of compounding. Interesting, Yeah,
all that sort of things It.
Speaker 2 (25:36):
Is amazing the power of compounding interest. Because I was
in Australia for a few years working in musical theater
and I didn't I didn't even know I had a
pension scheme.
Speaker 3 (25:44):
A compulsory set that compulsory and it was a.
Speaker 2 (25:47):
Long time ago, but I remember that money would go
into it and I thought, I've probably got about a
thousand bucks in it or something, and I'm not going
to tell you what's in it. And I was only
there for two or three years, and then I got
a they tracked me down in New Zealand. I don't
think I'm gaving my address. I don't know how that
worked out, but I've found it. Connect with it again
and the power of compounding interest. Okay, it's not a fortune,
(26:09):
but it's really surprising how much more money there is
than what was a couple of grand probably.
Speaker 3 (26:15):
And I think what Linda's touching on is that for
a lot of us, saving is a muscle that we
have to build. If you think about our human brains,
think a lot of our key man or key woman
brain still very much values the here and now, and
so the idea of saving for retirement or saving for
something quite down you're far down the track is something
that it can be hard to wrap your brain around.
So I hear what she's saying, which is if you
(26:36):
start early, then at least you can.
Speaker 2 (26:38):
Oh. No, I'm wishing i'd actually contributed more into it
back then without thinking about it. But anyway, Hey, thanks
for your call, lind But actually I think it's interesting
that the conversations that politicians are having now and everyone's
jumped on that bandwagon with key we Saber. I think
it's all good, good grist for the mill, isn't it,
Because whether you're going what was David Seymour wanted to
(26:59):
give seventeen year?
Speaker 1 (27:01):
Was it?
Speaker 3 (27:01):
No?
Speaker 2 (27:01):
Hang on? He wanted to give teenagers five hundred bucks
to play around with the share market and if they
made money, they got to keep it, and they got
to keep what they made. All these lessons that are
giving children an interest in investing and what money can
do just by virtue of it being money and investments.
Speaker 3 (27:21):
Yeah, I think that's one lesson we haven't touched on yet,
But that's something perhaps for your daughter to consider with
the money that she's earned, is giving it a go
on a platform to understand how shares work. What does
the stock market do? I think about my next door neighbor, Alice,
who I had an investing conversation with her, and she
went off and tried a few things, and just this
year she went to go buy her car and half
(27:41):
of the proceeds for her car came from her investments.
Speaker 2 (27:45):
Bloom BlimE me. I was just thinking how in suffer
it would be if your kids got onto the share
market and made a fortune.
Speaker 3 (27:53):
Just think of it as you don't need to support
them as much, right, that's the one.
Speaker 2 (27:56):
Yeah, that's the one. Look, we'll take a quick break
because we're going to talk also about the settings that
your children can that banks apply to different accounts depending
on your children's age, and the rules and the packages,
et cetera. Because Stephanie has done a bit of a
dig into that, and we'll talk about that after the break.
But you can give us a call as well. I
know eight hundred and eighty ten to eighty text nine
(28:18):
two nine two got some interesting texts coming on through
on about how people divvy up the chores and what
they get paid for what and all that sort of thing.
We'll get onto that as well. Twenty two and a
half minutes to six. Yes, welcome back. We're talking money
and kids and parental control and bank accounts and pocket
money and what do you give kids? You know, how
much say you should have over what your children do
(28:38):
with the money that they are either given or earn.
And I did find out I did call my wife
in the break because we do have a policy in
the house that if they earn something, there are given something,
whether it be a gift, well, gift cards for birthdays
are different. They can generally spend those, but generally if
it's cash, half of it goes into long term savings.
And so I'm thank you to my wife for letting
(29:00):
me know what the policy was. Stephanie, Now you've got
some info. You've dug into banks policies and what different
banks do for children and what the rules are or aren't.
Speaker 3 (29:12):
So yeah, just something to be aware of as a
parent when you go to open an account is what
control do you have and how does that change as
your child ages. So typically while they're still young under seven,
you've got full control, but over time that might you
still want to check. Can you monitor transactions? Can you
set withdrawal limits, can you set spending limits? What does
(29:34):
that look like, because every parent will have a different
view of how much they control they want over time.
Speaker 2 (29:38):
Yeah. Actually, I was surprised that my daughter, my oldest daughter,
she's got a bank account, and I mean she's probably
quite late to have one, to be honest, because a
lot of your friends have divot cards. But I was
surprised that she actually, and she's fifteen, she had the
bank's policy I think it was, but that they wouldn't
(29:59):
give us access to her account to look at it
or anything unless she agreed, which I did think was
a bit surprising given that she's a minor. And I
don't it's I don't know what the government law is
on that, because I don't worry. I want my kids
to have what they earn. But legally I would have
thought that until you're eighteen or whatever, what's what's yours
(30:23):
as the whole families if they choose it to be
that way. But that does also feel like if you're
one of those families where mum takes the money that
you earned, that would suck or dad? Should I say
include both? Sorry? Anyway, what are you? What do we
know about that in terms of age and the law.
Speaker 3 (30:38):
Well, I was just having a look in the break there,
and it looks like between thirteen years on upwards you
can as a child go independently open up a bank account.
Speaker 2 (30:47):
So wow, I guess there must be rules around lending
and debt though, wouldn't they.
Speaker 3 (30:53):
Would have to and what they can purchase as well, right,
I don't know what.
Speaker 2 (30:57):
Rules would well in terms of things like adult things,
adult things, that's right, okay, But in terms of debt,
I imagine you can't get into dead as a child.
Speaker 4 (31:06):
No.
Speaker 2 (31:07):
No, In fact, that would be on the bank if
that happened. So if a child's got some money and
they're over the age of thirteen or fourteen, they can
just go into a bank and say, I want to
open a bank account. And I guess, how do you
even have that form of ID? I didn't know how
that would work.
Speaker 3 (31:22):
I guess you might have a passport or birth certificate.
Speaker 2 (31:25):
No, well, well, I al would have a passport because
we've been lucky enough to take them overseas. That is surprising,
what if you had had to guess at the law.
Do you think that's right? Yeah?
Speaker 3 (31:36):
It was surprising when I read it too, because if
I think about investment accounts, so if you open up
in an investment account for your child, as an example,
a lot, a lot of those accounts you retain control
over up until they're eighteen. Some of those accounts actually
until you're kid's twenty five. Yeah, it's quite different.
Speaker 2 (31:52):
So yeah, I just can't quite get my head over that.
My producer said, I used my debit card to buy
Can I read this one out? Yeah, he says, I
used my debit card to buy to buy vapes, vapes
and booze when I was under under eighteen. The law
(32:12):
wasn't doing its job there. If there are any any
blocks on that kind of stuff, it's news to me.
Oh that's on the adults he bought.
Speaker 3 (32:20):
That's on the retailer though.
Speaker 2 (32:21):
Oh yes, oh yeah, you're so you're talking about the
law in terms of what people can sell to minors exactly.
I thought you were talking about there were certain transactions
or websites or something that you couldn't buy from. That
would sound way too complicated, wouldn't it. But I think
it's a rite of passage either way that my producer
(32:41):
locks shared that with me. That I mean, one of
the one of the things you do as a teenagers
you try and get hold of stuff that you're not
legally entitled to get hold of. I mean, I don't
know if you you. I imagine you were quite well behaved, Stephanie.
Speaker 3 (32:52):
I was relatively straight.
Speaker 2 (32:57):
Anyway. So if what would your advice be to parents
if they've decided they're going to open up a bank
account for their child and money's going to be going,
and whether it be through the child's own efforts or otherwise, do.
Speaker 3 (33:12):
Your research, do the bank comparison, make sure that the
account is going to pay some interest so that they
can see the fruits of their labor, so to speak.
And also check what your parental controls will be and
how that will change as they get older, because it
will vary bank to bank.
Speaker 2 (33:26):
I guess you've got over a discussion also about the
sort of rules that you want to impose as well.
Speaker 3 (33:31):
Yes, in terms of how they split their money, what
they spend on.
Speaker 2 (33:34):
It's a bit early for you to tell us what
your thoughts are on that, because you've got well so
but young five and seven. Mind you, those years will
go pretty quickly. Here's a couple of TIXSI ones says
mine have designated chores I pay on a scale minimum job.
I'm guessing they mean minimum wage. I don't know. Oh sorry,
(33:56):
good job, did extra with a payscale to reflect performance. Wow.
So if you did a really good job, you get
paid more. Half goes into their f poss and half
into savings. See their if pos so I can see
what they spend. They don't have access to their savings account.
My oldest is now eighteen, but she still allows me
to see her accounts, so she is a backup person
and someone watching her spending. Actually, I guess there are
(34:18):
also for kids. I mean there are spending monitoring apps
where you can get an analysis of what you've spent
and when and how can't you Yes, yes you can.
What was the thing that you were talking in the
break about just before we go about the number of
children who are still reliant on their parents beyond the
age of seventeen or eighteen, So one in.
Speaker 3 (34:36):
Two parents are supporting children financially over the age of eighteen.
So it could be for things like university fees, house deposit, wedding, etc.
But it also could be that you've got your kids
at home and so they're staying rent free, or you know,
you're still paying their mobile phone bills, so there are
different scales to that.
Speaker 2 (34:55):
Actually, that's not such a surprising statna you throw that in,
because there'll be plenty of parents who are more than
happy for their kids to stay at home for a few.
Speaker 3 (35:02):
Extra years until well boomerang home as well.
Speaker 2 (35:05):
I did that a couple of times myself. Anyway. Now,
if people want to learn more about the services at
Crown offers that's your organization, go go Crown dot com
and they where would they click on? Just the resources
and things like that.
Speaker 3 (35:18):
Top that's right, Yeah, on the resources. We do a
lot around parental leave specifically, so you'll probably find that
most of our resources center on that, and we mostly
went through employers as well to help their employees where
their financial wealth, all things.
Speaker 2 (35:29):
Going with the whole parental leave thing. Because you're quite
your advocates on that as well, and you I think
you maintain a database of companies do and who offers
the best sort of pay per rental leave. Have you
seen much of a change of that in the last
year or two or three?
Speaker 3 (35:45):
I would say that a couple of things. One is,
most employers are holding firm on their policy, and in
my view that's pretty good given the economic environment that
they're not rolling things back, okay, and then we're still
seeing some improvements, particularly around paid partners leave. So we
touched on this last time, but New Zealand remains one
of three developed countries with no paid partners leave what's whoever,
(36:05):
So employees are reliant on what their employer offers them.
So we're seeing more progress in that space. And then
also more progress in QV saver. So there's a keV
saver gender gap. Women's keV saver are on average twenty
five percent lower than men's and one of the reasons
is that women won't you take bigger gaps in peoplework,
and so we're seeing some employers try and address that
(36:27):
as well.
Speaker 2 (36:27):
Good stuff. Hey, Steffanie, thanks so much for coming in
and again commiserations on the football, because I know you're
hoping the all whites might pull one out of the bag,
but we know what that one that was five one.
We're going to talk about the football in just a
moment because the Sports rapp will be upon us with
Christopher Reeve from the New Zealand here. I will be
joining us in just to tech it's eleven minutes to
Sex News Talks. It'd be
Speaker 1 (36:47):
Yeah For more from the Weekend collective, Listen live to
news talks it'd be weekends from three pm, or follow
the podcast on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks, EDBA,
(00:30):
Change and.
Speaker 2 (00:31):
The Marrow.
Speaker 3 (00:34):
To Jason say, well, well see.
Speaker 2 (00:41):
Another and welcome back to the Weekend Collective. I'm Tim
Beverage and welcome in. Welcome back. Whichever wad is you've
just tuned, and you might have just chuned him because
you've been watching the football. We will have seen that
we New Zealand lost to Belgium five one, and I mean, look,
(01:01):
we didn't look quite winning it at any stage really
except the insolation prize being a Lajah just did score
another magnificent goal, and good on him. It's just that Belgium.
Belgium scored one almost immediately after we got it. We're
all celebrating. Oh oh, they've scored another one to make
it four to one, and then five to one, just
to spoil the party of those bloomen Belgians. Anyway, this
(01:25):
is the Parents Squad and we're gonna have a chat
about kids and money and pocket money and the money
that they earn and how much as parents you should, could, would, will,
can all of those verbs. How much control do you
or can you have or should you have over your
children's money. It's one thing, you know, I guess if
(01:47):
you give your children a couple of dollars and they're
just toddlers and they can you know that you've given
them that money, And I would imagine you're you probably
know they're going to spend it on sweets possibly, But
when they get a little bit older, they might actually
come across a bit of extra money. My daughter did
a babysitting gig for her ballet school, and she ended
(02:07):
up with quite a bit of money, to the extent
that we thought it was time to open her a
bank account. And I'm actually embarrassed to say this, but
I don't know exactly what rules we put in place,
because my wife sort of looked after it all. So
that's just a bit of a confession in away from
me that I suddenly thought, oh my god, I should
have called called Annie app and found out what we're
(02:29):
actually what rules we've put in place. But what rules
do you have if your children earn a bit of money.
I've got one of my daughters does a bit of
umpiring on the weekend during the week for netball, and
she's you know, she's sticking thirty or forty dollars I
wouldn't say it's in her bottom drawer. And in fact,
I don't even know where that money is going. God,
I really am not doing I'm dropping the ball here.
(02:50):
But anyway, what should we do with it? How should
you let your kids manage that money if they earn it?
Should they just be able to spend it on what
they want? I don't I would say the answer would
be no. But what are the limits? Anyway to talk
about this? She is the founder of crowns as Go
crown dot com, which is a website that basically helps
people sort out how they should handle their money. And
(03:12):
her name is Stephanie Powell and she is with me. Stephanie, Hello,
how are you hi?
Speaker 4 (03:17):
Tim?
Speaker 3 (03:17):
I'm great, Thanks, thanks for having me back.
Speaker 2 (03:19):
You're looking very bright ear and bushy tailed for someone
who's a soccer fan who has actually probably been absorbing
the fact that we we I mean, it was we
wanted to do better, didn't we?
Speaker 3 (03:29):
It was always going to be tough. Belgium's a top
ten team.
Speaker 2 (03:31):
But yes, yeah, well you see Iran has beaten Egypt
and they're going through. So the team we drew against
is going through. Oh that all smart, won't it? But
I guess our chance was against those other two teams.
Speaker 3 (03:43):
Sorry, I've just got to correct you ran ended up
having that winning goal disqualifies.
Speaker 2 (03:47):
Oh sorry, sorry my producers. I think you've just said
that on air, haven't you locked? Did you know you've
all heard that? So, yeah, they had their winning goal disallowed,
so they're not going through. Okay, right are they going through?
Maybe confusing one in this world? Okay, we won't talk
any more soccer. Let's money. Hey, So stephan Stephanie, you've
got a couple of children. I'm gonna stop saying kids aged?
(04:13):
How old are How are your children?
Speaker 3 (04:14):
Seven and almost five? So I'm a little bit behind you.
Speaker 2 (04:17):
Tim, Okay, and are they financially aware, literate on top
of things? Haven't got a clue.
Speaker 3 (04:23):
I'm trying, I think, like a lot of parents, I've
got some interesting stats to kick us off. So one
in three keyweeds rarely or never you to pull.
Speaker 2 (04:32):
That microphone a bit closer towards you. There we get.
Speaker 3 (04:35):
Let's try that again.
Speaker 2 (04:35):
There we go.
Speaker 3 (04:36):
One in three keyweds rarely or never talk to anyone
about money, even close friends or family. So it's something
a lot of us are very uncomfortable talking about.
Speaker 2 (04:46):
One in three.
Speaker 3 (04:46):
One in three?
Speaker 2 (04:48):
Ah? Is that because we're all petrified about our terribles
financial situation.
Speaker 3 (04:53):
I think some work sometimes a bit embarrassed or it's
seen as being impolite.
Speaker 2 (04:58):
Gosh, oh okay, yeah, that does surprise me. One in
three don't, okay? Right care yep?
Speaker 3 (05:06):
And the University of Cambridge found that many of our
core money habits and attitudes are formed by the time
we are seven years old.
Speaker 2 (05:14):
Oh okay, So you're only just going to squeeze in
with teaching your kids a bit about money.
Speaker 3 (05:19):
It's never too late, obviously, but I think it's to say,
even if we never have an intentional money discussion with
our kids, they are going to pick it up just
from what's happening around them.
Speaker 2 (05:30):
What's your theory on money personalities? Because I've got two daughters,
and I have a suspicion that they're both going to
have quite different approaches to money, and they live in
the same household, they observe the same good or bad
spending habits of their parents. And how much of it
(05:51):
can you actually teach them? And how much is just
personality that you know, I like to have nice things
and i've got money, I'm going to spend it. Versus
the natural squirrel.
Speaker 3 (06:00):
Yes, the nature versus nurture argument. So I think the
research shows that about a third ish of our money
habits are nature, but there's a lot of that nurture
can shape.
Speaker 2 (06:11):
Yeah. Still, so what lessons do you want to teach
your kids about money? Children about money?
Speaker 3 (06:15):
So mine is still quite young, but the couple of things.
One is just getting them to understand the concept of money.
So much in our world now is not physical, so
most of the time they're seeing me tap and go
as opposed to handing over cash.
Speaker 2 (06:27):
Oh yeah, yeah, carry on.
Speaker 3 (06:29):
So that's the first bit. So we do pocket money
and we have physical money. Actually it's annoying I have
to go to the bank to get coins out, but
I want them to touch money and to think about
it in that way. And then at this early stage
for them, it's getting them to understand splitting up their
money so you don't spend everything that you earn. We
have clear jars and we've got spend, save and give,
(06:50):
and so they portion it out between those jars. So
at this really young age, you know, kind of five
to seven, it's just getting them to understand, you know,
how when you hopefully get a paycheck when you're older,
how do you split it out?
Speaker 2 (07:01):
Do they understand the concept of saving because they know
what money does when you spend it, you get stuff
that you want. Do they understand just the philosophy? I mean,
it sounds like a dumb question, but I don't know
if it is, because it's a simple concept. It's like,
why can't I have that jar there? Why not? But
I want this?
Speaker 3 (07:19):
Well, sometimes it's around setting a goal so you don't
have everything right now that you need to buy the
thing that you want. So we're going to work towards that,
and we can even draw it out because again, my
kids are still quite young, but getting them to work
towards something and trap their progress can be quite motivating
as well.
Speaker 2 (07:36):
Yeah, actually that I think what you touched on with
cash is a big deal because I think that a
lot of adults if we had to hand over the
cash every time we did a transaction, that would slow
us down a bit on our spending. I'm just wondering
even for adults, that's not a bad one for mom
and dad.
Speaker 3 (07:53):
But absolutely the research on this is fascinating. So there's
a concept called the pain of pain. It's the part
of the brain that lights up with physical pain and disgust.
It's the same part that life up when you hand
it for cash. Really, yes, and so there's been some
fascinating research on this. One study found that people spend
twelve to eighteen percent more on a credit card compared
(08:15):
to using physical cash.
Speaker 2 (08:18):
That's is that, as a would would there be a
way of protecting yourself against that sort of lazy impulse
to spend more? How I mean, because I am quite
conscious of what I spend. I like to think generally,
I'm quite good at not spending money I don't need
to spend. Although you know, there was a sale the
(08:38):
other day, I think on some Bow's headphones and I
almost bought a poor pair of headphones that I actually
didn't need it, And the only reason was because they
were on sale, and I thought, well, this need a sale,
Maybe I'm going to want a pair of these, And
I didn't because I did. I do feel the pain
of spending, even though it's on the credit card. So
I don't know, is there a way of giving you
(08:58):
that sense of pain just through the digital transactions?
Speaker 3 (09:01):
I think sometimes it's just slowing yourself down. So yeah,
I would I put my hand up and say I'm
a spender. And so one of the things I've had
to do over time is just I have a rule
for myself that I don't buy fashion items, for example,
on the spot. So if I want it, I can
come back, or I can add it to the cart
and think about it, but I don't buy it on
(09:22):
the spot. And I think sometimes just putting a little
bit of friction between you and your transaction on you
can help you out. Hasn't fully slowed me down, but
it's definitely helpfully.
Speaker 2 (09:31):
Just makes me laugh because your businesses and helping people
manage their money, and it's just surprising to hear you
say I'm a spender. I like to spend it, and
I have to put these rules in place for me.
Bravo you. That's almost like I have that rule with
seconds for the kids because if I cook something well,
I made something delicious the other night, and I'm singing
my own praises there. Sorry, Anyway, there was something nice
(09:53):
for dinner the other night and the kids ate, you know,
they finished off, and they see, can we have some more?
And I said, I just want you to sit for
five minutes first, and it's is it a bit like
that with spending? You just put an enforced delay and
in five minutes time, oh.
Speaker 3 (10:09):
Maybe I don't give yourself twenty four hours or something
like that. I remember one financial educator she told me
her son wanted to buy something by a toy and
she made him go to the atm withdraw the money,
and by the time he walked from the atm to
the store, he changed his mind about handing over that cash.
Speaker 2 (10:26):
Of course, that is a good lesson to teach kids.
I wonder if we have we need to do that
with ours. They've earned The funny thing is they've earned
it in cash, and we make them go and put
it in the bank. And I wonder if just handling
the cash and putting it in the bank gives them
I don't know if it's the same as it you've
seen it go in, but when it comes out, it's
just a digital transaction, boom done.
Speaker 3 (10:47):
Yes, the benefit of the bank is hopefully they're earning
some interest on that money. So that's another concept you
want to get your kids to understand, is if I
leave it alone, it will my money will earn money
and I don't have to exchange my labor for.
Speaker 2 (10:59):
That, so do you? I mean, I don't know how
much you'd think ahead about this, but how much control? It?
Much control do you think children should have over their
own money? As an ethical point of view, let's say
once they're old enough to actually do a bit of
babysitting and do a maybe even have a part time job.
How much control or yeah, control, I don't like the
(11:19):
word control. I was looking for another one. But how
much influence? There we go, there's a bit of word.
How much influence would you expect to exert yourself?
Speaker 3 (11:27):
And I caveat this by saying, my kids are still young, right.
Speaker 2 (11:30):
Fine, I'm just thinking if you're thinking ahead though.
Speaker 3 (11:32):
Yes, I think you want to set some or I
would want to set some boundaries in terms of what
is saved and what is spent. So maybe at a
high level we agree on a split of the money
that comes in. But I think you've got to meet
your own mistakes. I've made plenty. I'm sure you have
to think everyone has made mistakes and that's how they've
learnt in terms of managing their money. And wouldn't you
rather your kids do it? When they're younger and the
(11:54):
stakes are lower and they realize, you know that, oh,
actually that's not a great purchase. So I wish I
hadn't done that rather than as an adult with a
credit card.
Speaker 2 (12:02):
Yeah, I guess I would probably think when it comes
to food, I wouldn't want them spending it on crappy
food all the time. And I don't know how i'd
exert my influence on that one, because also kids like
to treat. But if I had a child, and I
don't think if they were going to spend one hundred
dollars on sweets and lollies and stuff like that, I
would be not be I wouldn't be too keen on that.
(12:24):
And I think maybe part of the important thing is
to have a relationship with your kids where they'll actually
tell you what they want to do with their money
and just say, look, if you want to go and
buy something, just let us know what you're thinking of,
just in case we've got an opinion. Well that sound
of a posse.
Speaker 3 (12:37):
But also it's probably about helping them understand what do
they value with your money. So I sit down with
adults and I do budgets with them all the time,
and for me. I don't come in with a prescribed
X amount on this, but it's more actually, are you
really clear on how you want to spend your time
and money and therefore is your money going towards that?
Because often if you sit down and you look at
(12:58):
where your money has been going, there's sometimes a misalignment.
And I think it's helping your kids discover well, yes
I could buy one hundred dollars worth of sweets, but
also there are other things I could do with my
money and making them see that there are bigger options
out there.
Speaker 2 (13:10):
Do you give your kids pocket money?
Speaker 3 (13:11):
I do.
Speaker 2 (13:12):
Do you they have to do something in return for it?
Speaker 3 (13:14):
Not? At this stage, and I know it's controversial with
pocket money, everyone's got an opinion, but I think the
research shows that kids being able to actually learn through doing,
you know, and it doesn't have to be a ton. Again,
mine are still quite young, so at this point I
just want them to understand we split money and it grows, etc.
But I think as they get older there should be
opportunities for them to earn extra. So there are some
(13:36):
things you should do just because you're a member of
this household. Unpack the dishwasher, help with the laundry. Those
things I don't believe you should be paid for because
we all do that as part of being in a home.
But I think things like if you go mow the
lawn or something a bit extra as they get older,
that's an opportunity for them to earn a bit more.
Speaker 2 (13:51):
If they don't do their bit around the house. Does
pocket money get sacrificed or is they two totally separate things,
So you're not really because as soon as you sacrifice
it's a trade off, we are paying you to unload
the dish washer.
Speaker 3 (14:03):
That's right. I think it's a different conversation for me.
Speaker 2 (14:06):
Yeah, fair enough. I eight hundred eighty ten eight. What
are your rules with your kids on money and when
do you let them just make their own spending decisions?
Obviously probably when they leave home would be another one.
But then again, you might have you might have set
up a trust for them where they can buy their
first time if you're a bit flash, and you might
have a say on what they would do with that
money and how they spend it. But I eight hundred
(14:26):
eighty ten eighty. But it does time to the question
around pocket money, and you know how much you give
them do you let them spend the pocket money that
they have as they want to, or do you try
and actually say, as Stephanie was saying, you know, a
little bit goes into savings, a little bit goes here,
and here's something you can spend on something you want.
I wait, one hundred eighty ten eighty. Let's take some calls,
shall we? Yes, that's a good idea, Pete, Hello.
Speaker 4 (14:50):
Hi, Kim Good a curist deep cure.
Speaker 2 (14:56):
What have you got to say? Sorry?
Speaker 4 (14:58):
I just wanted to relate pocket money, begady when I
spring myself. Sorry, I did. And we were doing now
oriented things like learning martial arts. You know, I bought
my book one time of the Red one hundred and
fifty moves in a different separate moons, and I see
(15:21):
three three moves. Even movie you've learned, I'll pay you
a dollar and he mean through multl book box and
the costmere paper. But he didn't in toowards the moments
he showed me which movie he learned and demonstrated to me.
So you gave a.
Speaker 2 (15:39):
Reward for self improvement sort of stuff in the martial arts.
Speaker 4 (15:43):
I gave him a dollar for every news And what
did he what did he do with the money, Well,
he just mean it wasn't it was only a dollar?
Speaker 2 (15:52):
But move, Well, it depends.
Speaker 4 (15:54):
How old is my grand my grandson is. I'm taking
them through the same process, increased the move from one
dollar to two dollars, keeping up of the finance or
times and in place.
Speaker 2 (16:08):
It could cost you a lot of money. Pay it
could cost you a lot of money, mate, But that's
an interesting one. Actually, give you self defense, martial arts, moves,
learning a few things.
Speaker 3 (16:19):
I've heard of parents incentivizing for study or things like that,
or reading books.
Speaker 2 (16:23):
What do you think of that? Okay, let's put aside
Pete's call on martial arts, which is a quirky sort
of arrangement. But see, for instance, my I don't want
to put money at the center of everything. So for instance,
my girls love playing sport, and I would never reward
them for doing stuff that they should simply do because
they want to be better at what they want to do.
And I guess that's a philosophical thing, but yeah, I
(16:45):
think it.
Speaker 3 (16:46):
Comes down also to the type of kid that you have.
Some kids are perhaps motivated in that way.
Speaker 2 (16:51):
What if the if they're not motivated to play the sport.
Now that's a god. That's a whole different parent in
conversation altogether. Let's take some more calls on this, and
I actually tell you what we will take the break.
It's twenty three and a half past five. We talk
about children, money, parental control. How do you sort it
out when your kids have got a bit of money finally,
and they could if they were left to their own device,
(17:12):
to just spend it on whatever, or do you actually
put rules in place eight hundred eighty ten eighty text
nine two nine two Stephanie Power Power? Should I say
not power and not be confused with the Hollywood actor?
I think Stephanie Powers. I think it might have been
actually now I think of it. Stephanie Powell Pow is
our guest. She is the founder of go crown dot com.
(17:34):
We'll be back in just a minute. News Talk said
b News Talk said, be. This is the Parents Squad.
My guest is Stephanie Powell. She's the founder of go
crown dot com. And we're talking about kids and money
and how you manage it and you know, what are
the rules in your household and also other ideas around
teaching them around the value of money and what it's
(17:56):
worth than Stephanie was saying that, you know, the just
even for people, grown ups, people kids of people. What
am I saying even for grown ups? Just the idea
of Stephanie Handler and cash is a great reminder of
what money's worth when you've got a hand over the readies,
as they say, and.
Speaker 3 (18:12):
It's harder for kids now there are even more ways
to pay than there were when we were growing up.
You know, there's buy now, paid leader, contactless, subscriptions, lots
of different ways that we didn't have to contend with
as children.
Speaker 2 (18:24):
Just before we got our next caller that there's a
great text here says my girl was labels only, so
she would only buy clothes. Obviously that were the labels
to have. I got fed up and at twelve years
gave her one hundred dollars and left it the mall
to buy her own clothes. She came home with one
labeled item and several glassons items. Lesson learned never had
(18:46):
to shop with her again. She opt shops now and
there's a canny shopper. Now that's a risky game. You say, right,
I'm not buying stuff, here's the money, you go and
do it. And they just come back with one expensive
outfit that's not really good for anything.
Speaker 3 (19:03):
But then it's on them. I think as a parent
you can at some boundaries. So it might be that
you will give you a clothing allowance for the year,
and it's on or for the term, and it's on
you to manage it. And if you buy one nice item,
well that's it. We're not coming in to bail you out.
Speaker 2 (19:17):
Fair enough. Absolutely, I'm with you. Let's go to our
next caller. So I'm not sure I'm going to pronounce
your name right?
Speaker 5 (19:23):
Is it MONARCHI monarchy, that's the one. How are you doing?
Speaker 4 (19:26):
Team?
Speaker 2 (19:26):
Good mate? How are you?
Speaker 4 (19:29):
Yeah?
Speaker 5 (19:29):
Not too bad? Thank you. I just jumped in the
carr and just started catching the conversation here and just
wanted to put my own two cents.
Speaker 4 (19:35):
Then.
Speaker 2 (19:35):
Sure, it's exactly what You've come to the right place, mate, Yeah.
Speaker 4 (19:41):
Good.
Speaker 5 (19:42):
So I've got three kids five, almost seven and almost twelve,
and I've been paying them pretty much, as you know,
as their job is to go to school. So ever
since they were in daycare. You know, they make ten
bucks a week because they go five days a week
to two dollars a day and then when they've come
(20:03):
up to after prime school, we've we've bumped it up
to twenty bucks a week. Fortunately we're in a position
that we can do that. But we don't give them
pocket money, you know, as the co host said, for
you know, just doing jobs around the house, like it's
an expectation that you in your room do dishes, dishare
shit and whatnot. That's just part of running a household.
(20:25):
So for them, their their job like mum and dad,
you know, we get paid to go to work, so
they get paid to go to school. So that's a
bit of an incentive for them to stay motivated and whatnot.
Speaker 3 (20:35):
And what can they do with those the funds that
you give them.
Speaker 5 (20:39):
So three quarters of those funds go straight into the
ki we saver and then the other quarter of those
funds just go into the nominal account that obviously we control,
and they can do little jobs around like you see
the lawn wash the car for a bit of extra
just to go and do whatever, you get some candies
or whatnot. But for big ticket items we always say
(21:03):
we'll match it, you know, whatever it is. If you
can pay half, we'll pay the other half.
Speaker 2 (21:07):
So what's what's their attitude towards school just as a result.
Of course, what you've done is build up a habit
that they go anyway, What are you stuck with having
to pay them to go to school or what's the
what's their attitude towards it?
Speaker 5 (21:24):
No, well, I mean I'm quite lucky. Our kids are
quite motivated to go to school anyway, you know, my
my young fellow, you know almost seven. Developmentally, you know,
it's probably not as motivated in terms of you know,
is reading and writing and whatnot that we do all
that sort of stuff at home too, So it's coming along.
(21:46):
But their attitudes to school are you know, pretty high anyway.
We value education in our family.
Speaker 2 (21:53):
So yes, it's such an interesting that's good. That's fascinating
because there's a part of me that sort of thinks,
I don't think I want to pay my kids to
go to school. But then that's sentence you just said
as about you put a value on education. That's important
for so it's it's it's an interesting one. Was it
was it an easy decision for you to do?
Speaker 4 (22:12):
That?
Speaker 2 (22:12):
Was it just a brain wave? You went, you know what,
we're going to pay the kids to go to school.
They're never going to miss a day in their.
Speaker 5 (22:17):
Lives, a little bit of A and a little bit
of B. You know, they get sick and they missed
school days. It's like, you know, Mum and dad, you know,
might need to take a sect day here and there.
So they still get paid whatever it is, you know,
and that teaches them, you know, the value of money,
the value of education, the value of you know, that
(22:39):
self respect of you know, putting their best foot forward
as well. So yeah, yeah, it's not a hard thing,
you know, Like we talked to a lot of our
friends who are quite surprised that we do that. So
I thought, I just put it out there to the
to the world, and yeah.
Speaker 2 (22:53):
Good idea. That's that is a fascinating idea.
Speaker 3 (23:00):
I like that three quarters of the money is going
towards the Kiwi Saber too, so well, that's.
Speaker 2 (23:04):
What I mean. It's like he's giving them a bit
of incentive. And because it's like pocket maybe the kids
assume that they're getting the money as pocket money anyway,
but he's put a value on it, and it's because
we value education. So it's sort of it's a mixture
of lessons there. I can't I can't work out what
I reckon that.
Speaker 3 (23:20):
One, But I think what it does show you to
him is everyone's got such different attitudes and relationships to
money and what we pass on to our kids too. Yeah,
there's no one size fits all with this.
Speaker 2 (23:30):
No, no, I think. I mean I wouldn't have paid
our kids to go to school. But it's yeah, I'm
a bit for I think he won me over with
the idea that we value education and they're telling the
kids that, and that's their little lesson and just happens
to be how the money transacts with pocket money. And
it's a fascinating one, that one.
Speaker 3 (23:50):
And the idea would be that it mimics salary in
a way.
Speaker 2 (23:53):
Yeah, yeah, that is a fascinating one. I don't really
know where to package that one. Good on the monarchy.
That was a good call mate, fascinating idea. Let's go
to Linda.
Speaker 6 (24:03):
Hello, get high there. Good Hello. So what I'd like
to say is like, it's probably given my age away.
But when I was at school, we all had the
AFB saver accounts and that gave you the compounding interest.
(24:23):
Everyone took some money to school. It doesn't matter how
much it was, but you were saving. From the word go. Yeah,
and it gave you the value of saving men And
did that stick with.
Speaker 2 (24:35):
You throughout as a result of that first experience.
Speaker 6 (24:38):
I really think it has.
Speaker 1 (24:40):
Yeah.
Speaker 6 (24:40):
I think everyone did it. Everyone saved somethink, whether it
was a small amount or a big amount, you saved somethnk.
Speaker 2 (24:48):
Yeah. Actually, is there a modern de Quillander that Stephanie.
Speaker 3 (24:53):
I don't think so much in terms of a bank
account at schools anymore, but I remember having a I
grew up in Australia, but Commonwealth Bank they did a
little checkbook and I had one of those as a kid.
Speaker 2 (25:03):
There was a post office, there was a post offic
savings banks scheme. I think we got ten cents in
it at the start from the government. Actually, it's coming
back into some of the election policies, say fifteen hundred
bucks I think.
Speaker 6 (25:16):
Is I was thinking about that's her and I thought
that would be a good way for them to actually
start it off by having like the ASP account where
you all have money, you take it to school. Even
if it's only a few cents, it dosn't matter. You're
still putting it in there. You see the value of compounding. Interesting, Yeah,
all that sort of things It.
Speaker 2 (25:36):
Is amazing the power of compounding interest. Because I was
in Australia for a few years working in musical theater
and I didn't I didn't even know I had a
pension scheme.
Speaker 3 (25:44):
A compulsory set that compulsory and it was a.
Speaker 2 (25:47):
Long time ago, but I remember that money would go
into it and I thought, I've probably got about a
thousand bucks in it or something, and I'm not going
to tell you what's in it. And I was only
there for two or three years, and then I got
a they tracked me down in New Zealand. I don't
think I'm gaving my address. I don't know how that
worked out, but I've found it. Connect with it again
and the power of compounding interest. Okay, it's not a fortune,
(26:09):
but it's really surprising how much more money there is
than what was a couple of grand probably.
Speaker 3 (26:15):
And I think what Linda's touching on is that for
a lot of us, saving is a muscle that we
have to build. If you think about our human brains,
think a lot of our key man or key woman
brain still very much values the here and now, and
so the idea of saving for retirement or saving for
something quite down you're far down the track is something
that it can be hard to wrap your brain around.
So I hear what she's saying, which is if you
(26:36):
start early, then at least you can.
Speaker 2 (26:38):
Oh. No, I'm wishing i'd actually contributed more into it
back then without thinking about it. But anyway, Hey, thanks
for your call, lind But actually I think it's interesting
that the conversations that politicians are having now and everyone's
jumped on that bandwagon with key we Saber. I think
it's all good, good grist for the mill, isn't it,
Because whether you're going what was David Seymour wanted to
(26:59):
give seventeen year?
Speaker 1 (27:01):
Was it?
Speaker 3 (27:01):
No?
Speaker 2 (27:01):
Hang on? He wanted to give teenagers five hundred bucks
to play around with the share market and if they
made money, they got to keep it, and they got
to keep what they made. All these lessons that are
giving children an interest in investing and what money can
do just by virtue of it being money and investments.
Speaker 3 (27:21):
Yeah, I think that's one lesson we haven't touched on yet,
But that's something perhaps for your daughter to consider with
the money that she's earned, is giving it a go
on a platform to understand how shares work. What does
the stock market do? I think about my next door neighbor, Alice,
who I had an investing conversation with her, and she
went off and tried a few things, and just this
year she went to go buy her car and half
(27:41):
of the proceeds for her car came from her investments.
Speaker 2 (27:45):
Bloom BlimE me. I was just thinking how in suffer
it would be if your kids got onto the share
market and made a fortune.
Speaker 3 (27:53):
Just think of it as you don't need to support
them as much, right, that's the one.
Speaker 2 (27:56):
Yeah, that's the one. Look, we'll take a quick break
because we're going to talk also about the settings that
your children can that banks apply to different accounts depending
on your children's age, and the rules and the packages,
et cetera. Because Stephanie has done a bit of a
dig into that, and we'll talk about that after the break.
But you can give us a call as well. I
know eight hundred and eighty ten to eighty text nine
(28:18):
two nine two got some interesting texts coming on through
on about how people divvy up the chores and what
they get paid for what and all that sort of thing.
We'll get onto that as well. Twenty two and a
half minutes to six. Yes, welcome back. We're talking money
and kids and parental control and bank accounts and pocket
money and what do you give kids? You know, how
much say you should have over what your children do
(28:38):
with the money that they are either given or earn.
And I did find out I did call my wife
in the break because we do have a policy in
the house that if they earn something, there are given something,
whether it be a gift, well, gift cards for birthdays
are different. They can generally spend those, but generally if
it's cash, half of it goes into long term savings.
And so I'm thank you to my wife for letting
(29:00):
me know what the policy was. Stephanie, Now you've got
some info. You've dug into banks policies and what different
banks do for children and what the rules are or aren't.
Speaker 3 (29:12):
So yeah, just something to be aware of as a
parent when you go to open an account is what
control do you have and how does that change as
your child ages. So typically while they're still young under seven,
you've got full control, but over time that might you
still want to check. Can you monitor transactions? Can you
set withdrawal limits, can you set spending limits? What does
(29:34):
that look like, because every parent will have a different
view of how much they control they want over time.
Speaker 2 (29:38):
Yeah. Actually, I was surprised that my daughter, my oldest daughter,
she's got a bank account, and I mean she's probably
quite late to have one, to be honest, because a
lot of your friends have divot cards. But I was
surprised that she actually, and she's fifteen, she had the
bank's policy I think it was, but that they wouldn't
(29:59):
give us access to her account to look at it
or anything unless she agreed, which I did think was
a bit surprising given that she's a minor. And I
don't it's I don't know what the government law is
on that, because I don't worry. I want my kids
to have what they earn. But legally I would have
thought that until you're eighteen or whatever, what's what's yours
(30:23):
as the whole families if they choose it to be
that way. But that does also feel like if you're
one of those families where mum takes the money that
you earned, that would suck or dad? Should I say
include both? Sorry? Anyway, what are you? What do we
know about that in terms of age and the law.
Speaker 3 (30:38):
Well, I was just having a look in the break there,
and it looks like between thirteen years on upwards you
can as a child go independently open up a bank account.
Speaker 2 (30:47):
So wow, I guess there must be rules around lending
and debt though, wouldn't they.
Speaker 3 (30:53):
Would have to and what they can purchase as well, right,
I don't know what.
Speaker 2 (30:57):
Rules would well in terms of things like adult things,
adult things, that's right, okay, But in terms of debt,
I imagine you can't get into dead as a child.
Speaker 4 (31:06):
No.
Speaker 2 (31:07):
No, In fact, that would be on the bank if
that happened. So if a child's got some money and
they're over the age of thirteen or fourteen, they can
just go into a bank and say, I want to
open a bank account. And I guess, how do you
even have that form of ID? I didn't know how
that would work.
Speaker 3 (31:22):
I guess you might have a passport or birth certificate.
Speaker 2 (31:25):
No, well, well, I al would have a passport because
we've been lucky enough to take them overseas. That is surprising,
what if you had had to guess at the law.
Do you think that's right? Yeah?
Speaker 3 (31:36):
It was surprising when I read it too, because if
I think about investment accounts, so if you open up
in an investment account for your child, as an example,
a lot, a lot of those accounts you retain control
over up until they're eighteen. Some of those accounts actually
until you're kid's twenty five. Yeah, it's quite different.
Speaker 2 (31:52):
So yeah, I just can't quite get my head over that.
My producer said, I used my debit card to buy
Can I read this one out? Yeah, he says, I
used my debit card to buy to buy vapes, vapes
and booze when I was under under eighteen. The law
(32:12):
wasn't doing its job there. If there are any any
blocks on that kind of stuff, it's news to me.
Oh that's on the adults he bought.
Speaker 3 (32:20):
That's on the retailer though.
Speaker 2 (32:21):
Oh yes, oh yeah, you're so you're talking about the
law in terms of what people can sell to minors exactly.
I thought you were talking about there were certain transactions
or websites or something that you couldn't buy from. That
would sound way too complicated, wouldn't it. But I think
it's a rite of passage either way that my producer
(32:41):
locks shared that with me. That I mean, one of
the one of the things you do as a teenagers
you try and get hold of stuff that you're not
legally entitled to get hold of. I mean, I don't
know if you you. I imagine you were quite well behaved, Stephanie.
Speaker 3 (32:52):
I was relatively straight.
Speaker 2 (32:57):
Anyway. So if what would your advice be to parents
if they've decided they're going to open up a bank
account for their child and money's going to be going,
and whether it be through the child's own efforts or otherwise, do.
Speaker 3 (33:12):
Your research, do the bank comparison, make sure that the
account is going to pay some interest so that they
can see the fruits of their labor, so to speak.
And also check what your parental controls will be and
how that will change as they get older, because it
will vary bank to bank.
Speaker 2 (33:26):
I guess you've got over a discussion also about the
sort of rules that you want to impose as well.
Speaker 3 (33:31):
Yes, in terms of how they split their money, what
they spend on.
Speaker 2 (33:34):
It's a bit early for you to tell us what
your thoughts are on that, because you've got well so
but young five and seven. Mind you, those years will
go pretty quickly. Here's a couple of TIXSI ones says
mine have designated chores I pay on a scale minimum job.
I'm guessing they mean minimum wage. I don't know. Oh sorry,
(33:56):
good job, did extra with a payscale to reflect performance. Wow.
So if you did a really good job, you get
paid more. Half goes into their f poss and half
into savings. See their if pos so I can see
what they spend. They don't have access to their savings account.
My oldest is now eighteen, but she still allows me
to see her accounts, so she is a backup person
and someone watching her spending. Actually, I guess there are
(34:18):
also for kids. I mean there are spending monitoring apps
where you can get an analysis of what you've spent
and when and how can't you Yes, yes you can.
What was the thing that you were talking in the
break about just before we go about the number of
children who are still reliant on their parents beyond the
age of seventeen or eighteen, So one in.
Speaker 3 (34:36):
Two parents are supporting children financially over the age of eighteen.
So it could be for things like university fees, house deposit, wedding, etc.
But it also could be that you've got your kids
at home and so they're staying rent free, or you know,
you're still paying their mobile phone bills, so there are
different scales to that.
Speaker 2 (34:55):
Actually, that's not such a surprising statna you throw that in,
because there'll be plenty of parents who are more than
happy for their kids to stay at home for a few.
Speaker 3 (35:02):
Extra years until well boomerang home as well.
Speaker 2 (35:05):
I did that a couple of times myself. Anyway. Now,
if people want to learn more about the services at
Crown offers that's your organization, go go Crown dot com
and they where would they click on? Just the resources
and things like that.
Speaker 3 (35:18):
Top that's right, Yeah, on the resources. We do a
lot around parental leave specifically, so you'll probably find that
most of our resources center on that, and we mostly
went through employers as well to help their employees where
their financial wealth, all things.
Speaker 2 (35:29):
Going with the whole parental leave thing. Because you're quite
your advocates on that as well, and you I think
you maintain a database of companies do and who offers
the best sort of pay per rental leave. Have you
seen much of a change of that in the last
year or two or three?
Speaker 3 (35:45):
I would say that a couple of things. One is,
most employers are holding firm on their policy, and in
my view that's pretty good given the economic environment that
they're not rolling things back, okay, and then we're still
seeing some improvements, particularly around paid partners leave. So we
touched on this last time, but New Zealand remains one
of three developed countries with no paid partners leave what's whoever,
(36:05):
So employees are reliant on what their employer offers them.
So we're seeing more progress in that space. And then
also more progress in QV saver. So there's a keV
saver gender gap. Women's keV saver are on average twenty
five percent lower than men's and one of the reasons
is that women won't you take bigger gaps in peoplework,
and so we're seeing some employers try and address that
(36:27):
as well.
Speaker 2 (36:27):
Good stuff. Hey, Steffanie, thanks so much for coming in
and again commiserations on the football, because I know you're
hoping the all whites might pull one out of the bag,
but we know what that one that was five one.
We're going to talk about the football in just a
moment because the Sports rapp will be upon us with
Christopher Reeve from the New Zealand here. I will be
joining us in just to tech it's eleven minutes to
Sex News Talks. It'd be
Speaker 1 (36:47):
Yeah For more from the Weekend collective, Listen live to
news talks it'd be weekends from three pm, or follow
the podcast on iHeartRadio
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