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Why you shouldn’t worry if your kids’ school ditches Dollarmites

kids money

Many schools are ditching the Commonwealth Bank Dollarmites banking scheme without having a replacement program.

If this will affect your family, don’t worry because there is a do-it-yourself model you can put in place.

It works with all banks and relies on the simple concept of having two bank accounts for your kids: one for spending and one for savings.

You can ask your bank to link a debit card to your child’s spending account (the card is in your name) and you can pay their pocket money directly into this account.

They can then spend their own money using their debit card – under your supervision, of course. It teaches them about earning money and also about spending money in a modern tap-and-go society.

Their second account is for their savings – this is where you can put money they get for birthdays and Christmas gifts.

Don’t link a debit card to this account – this one is to be used for what they are saving up for, such as a bike, a game or a cool pair of shoes.

Either way, ask your bank or credit union about its best spending/savings accounts for kids that offer fee-free options and a high-interest rate.

Written by Steve Crawford

Steve Crawford

Steve Crawford is CEO of Experience Wealth.

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