An entrepreneur has told how she was given $140 a month pocket money from the age of just 7—but said it taught her how to budget for life.
Hannah Koumakis, 24, received this fund from her parents chore-free until she turned 14 when she was taught to make her own money by washing neighbor’s cars and walking their dogs.
But it came with a catch—she had to budget and record her finances in a book, buying almost everything she needed for herself.
For 11 years, she divided her “income” into separate categories—long-term and short-term savings, spending, and tithe donations for the local church.
She said her friends assumed the family was rich—but actually, Ms. Koumakis and her two sisters had to use the money to pay for their own essentials like clothes, meals out with her family, and school trips.
Each month she would put $70 in long-term savings, $20 in short-term savings, and $14 to tithe—leaving her $36 to spend.
The 11 years of long-term saving Ms. Koumakis experienced, all went towards buying a house.
Self-employed podcaster and business owner Ms. Koumakis, from Auckland, New Zealand, said it taught her budgeting from a young age and she now feels independent in her business spending, with her own house and car.
“Spending and saving are such important lessons,” she said. "I don’t think there is enough education around it, and I feel very lucky to have had that growing up.
“It has helped me masses in life. You’re never going to not use that skill; parents should do it if they can.
“In 2007, $140 was a lot more than now.
“Our dad would make us write all our finances down in a book.”
Ms. Koumakis and her sisters were home-schooled from the age of 7 to 14 by their mother, while their father worked as a menswear salesman.
She said the pocket money system made her very grateful for things at a young age because she had to buy most of what she needed herself—so she understood how much things cost.
Money-savvy Ms. Koumakis said this was even more noticeable at Christmas.
“At Christmas time, I remember my sisters and I getting really excited over new socks,” she said.
“They were just plain socks, but we could appreciate it as we didn’t then have to spend our money on them.
“I mean most kids would not get excited over socks, but that’s why the way we were given pocket money was so important.
“People assumed at school that we were rich because of our pocket money, but we weren’t.
“People couldn’t get that most of my pocket money as a kid was spent on things parents would usually buy for kids themselves.
“Our money was even used on our vacations.
“So, from 7 to 14, any time spent traveling, we would use the money we had been given too.”
Although Ms. Koumakis swears by her father’s method, she warns parents wishing to follow this idea to fully think through how much they'll give their children.
“Obviously, $140 was a lot back in 2007 when I was saving, but that’s changed now,” she said. “I would advise that you fully work out how much everything to do with your child costs you first, and work from there.
“It is important you give enough for your child to get by, and to monitor and guide them through their finances.”
