Fixed saving and a spending percentage: order changes the allowance for purchases
By Erik Nilsen · Kroni2 min read
When an agreement combines fixed saving with a spending percentage, it must identify the percentage base. Changing the order can change the purchase limit. Write the steps before your child selects an item.
Identical figures, two different rules
In a hypothetical example, your child receives 100 units. The family considers saving 10 and allowing at most 50 per cent for an optional purchase. The arbitrary figures compare two possible new agreements.
Rule A calculates spending from the full receipt: 100 × 0.50 = 50. Your child also sets aside 10 for saving. If the full purchase allowance is used, 100 − 50 − 10 = 40 remains unallocated.
Rule B first sets aside 10. The remainder is 90 and the spending limit becomes 90 × 0.50 = 45. Using that limit leaves 100 − 10 − 45 = 45 unallocated. Saving is 10 under either rule, but spending limits differ by 5.
Write the base beside the percentage
A practical snag is an adult recalling “half the money for spending” while your child calculates half what remains after saving. Either method can follow a clear agreement, but they are different rules.
An item costing 48 fits A's limit of 50 but not B's limit of 45. Choose the rule before purchasing rather than selecting whichever makes the item permissible afterwards.
The limit also permits spending up to an amount rather than requiring it. Spending 30 under B leaves 100 − 10 − 30 = 60 unallocated. The calculated limit of 45 is not another expense to deduct.
Ask your family: “Does the percentage apply to the full receipt or the remainder after fixed saving?”
Clarify what the virtual balance represents
Kroni keeps track using a virtual balance and does not transfer money. Cash your child has received and amounts an adult still owes are different things. This exercise concerns money actually received. Agree how it fits your record so the same amount is not counted both as received and still unpaid. Read about allowance in Kroni.
