Saving 30 with a 20 per cent share: how much received money is needed?
By Erik Nilsen · Kroni2 min read
A chosen saving percentage does not alone tell you how much money your child sets aside. If they want a particular amount, calculate backwards to see what received total that share requires. Separate the wish from money actually available.
Find the full amount from the saving share
In a hypothetical example, your child wants to save 30 units by setting aside 20 per cent of received money. These arbitrary figures do not recommend a saving rate.
Twenty per cent is one fifth. If one fifth needs to be 30, the complete amount must be 5 × 30 = 150 units. Check with 150 × 0.20 = 30.
Your child has actually received only 60. Keeping that share makes saving 60 × 0.20 = 12, leaving 48 for other purposes. The difference between the desired saving and this allocation is 30 − 12 = 18. Those 18 do not become an additional balance merely because the plan requires them.
Choose what should change
A practical snag is saying “I save 20 per cent, so that is 30” without checking the base. Write both the share and the received total beside the calculation.
Your child may save 12 now and leave the rest of the desired amount for later. Your family could also consider a different split of the actual 60. Saving 30 out of 60 means 30 / 60 = 50 per cent and leaves 30. That requires a new agreement about which other choices receive less money.
This calculation does not instruct your child to earn more or borrow the difference. Record actual saving and retain any future wish as a plan. A percentage rule and a fixed saving amount are different ways of agreeing an allocation.
Ask your family: “Do we want to preserve the percentage, or prioritise the money amount?”
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.
