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What it means if your kids' school is ditching Dollarmites

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Many schools are ditching the Commonwealth Bank Dollarmites banking scheme without having a replacement program.

If this will affect your family, don't worry because there is a do-it-yourself model you can put in place.

It works with all banks and relies on the simple concept of having two bank accounts for your kids: one for spending and one for savings.

You can ask your bank to link a debit card to your child's spending account (the card is in your name) and you can pay their pocket money directly into this account.

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They can then spend their own money using their debit card - under your supervision, of course. It teaches them about earning money and also about spending money in a modern tap-and-go society.

Their second account is for their savings - this is where you can put money they get for birthdays and Christmas gifts.

Don't link a debit card to this account - this one is to be used for what they are saving up for, such as a bike, a game or a cool pair of shoes.

Either way, ask your bank or credit union about its best spending/savings accounts for kids that offer fee-free options and a high-interest rate.

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