Save twice what your child spends: divide three parts rather than two
By Erik Nilsen · Kroni2 min read
An agreement to save twice what your child spends divides the money into three equal parts: one for spending and two for saving. That differs from saving half the whole amount. Write the ratio before allocating.
Find the value of one part
In a hypothetical example, your child receives 90 units and chooses a spending-to-saving ratio of 1:2. The arbitrary amount and allocation are invented rather than recommended saving requirements.
The ratio contains 1 + 2 = 3 parts altogether. Each part is 90 / 3 = 30 units. Spending receives one part of 30, while saving receives two parts of 60. Check that 30 + 60 = 90 and saving of 60 is twice spending of 30.
Dividing 90 into two equal amounts of 45 would produce a ratio of 1:1. Saving would then equal spending rather than double it. “Twice spending” does not mean “half the total”.
Keep both sides of the agreement
A practical snag is remembering only the number two and dividing the total by two. Write “one spending + two saving = three parts”. Invite your child to draw three boxes and mark two as saving.
With a received total of 60, the same ratio produces 20 for spending and 40 for saving. Amounts change while the ratio remains 1:2. Do not retain saving of 60 when the total is only 60 and the agreement also allocates spending money.
You may agree another allocation, but write its ratio correctly. Record the actual amounts allocated; a ratio does not create extra money.
Ask your family: “How many parts are there altogether, and which parts go to each purpose?”
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.
