When it comes to managing the family budget, it turns out parents might be able to learn a few things from the kids.
A money lesson by Sydney parents Felicity and Graham Logan had them turn over total control of the household finances to their 14-year-old daughter and 12-year-old son.
Felicity said she got the idea after listening to a TEDx talk by Sydney maths teacher Eddie Woo, who said he taught teenagers to run the family budget.
“I thought it was a really cool idea,” Felicity told Your Money Live.
The kids had to pay for everything from entertainment costs, gas, water, telephone, food and school bills for one month each.
And it seems the kids were pretty good at it. Daughter Olivia saved more than $500 during her month.
“It was definitely challenging because I had to say no to a lot of requests,” she said.
One of those requests was telling her parents “no” when they wanted to go to a cafe or buy souvenirs on work trips abroad.
She also took charge by giving her parents an allowance of $50 a week, which she had to adjust after they complained.
On another occasion, Josh said an argument fired up after his dad overspent at the supermarket, adding treats like waffles to the list, when he was sent to buy potatoes and onions.
To cut down on costs, Olivia managed to save the most from planning their groceries and eating out less.
Cutting down on junk food was one part, but they also created meal plans for the week, reducing the groceries they didn’t need.
Felicity said what started as a lesson for the kids, ended up with both parents learning a few things about budgeting themselves.
Watch the full interview with the Logan Family above.