Now we are ready to start.

Presenter: Hello, everybody, and [bad word] to our weekly program for parents. Every week we invite experts to talk about the burning issues that parents have when 
bringing up their children. Today’s expert is Lora Johns.

Lora Johns: Good afternoon.

Presenter: Lora, what exactly are you going to talk about today?

Lora Johns: Today I’d like to talk about kids and pocket money.

Presenter: That’s definitely an important topic for our listeners!

Lora Johns: Many children first learn the value of money by receiving an allowance. The idea is to let children learn from experience at an age when financial mistakes
are not very costly.

Presenter: Sounds wise. So. how much money do parents usually give to their kids?

Lora Johns: The amount of money that parents give to their children differs from family to family. Timing is another consideration. Some children get a weekly
allowance, others get a monthly allowance: any regular time period is OK. What’s important is that parents should make clear what, if anything, the child is expected to buy with the money.

Presenter: Is that so important?

Lora Johns: It’s [bad word] #33; At first, young children often spend all of their allowance too quickly after they receive it. If they do this, they learn the hard way that they need to have a personal budget. When I work with parents, I always advise that they not give their kids any more money until the next allowance. The object is to show young people that a budget demands choices between spending and saving. Older children should be responsible enough to save money for larger costs, like clothing or electronics.

Presenter: I know many people give their children pocket money for doing chores around the house. What do you think? Is that a good idea?

Lora Johns: Many experts who have written on the subject of allowances say it’s not a good Idea to pay your child for doing regular household chores, like washing the dinner dishes. These Jobs are just a normal part of family life. Paying children to do extra work around the house, however, can be useful. It can even provide an understanding of how a business works.

Presenter: So, pocket money is a positive thing after all?

Lora Johns: It can be. Allowances give children a chance to experience the things they can do with money. They can share it in the form of gifts or donations to a good cause. They can use it to buy things they want. Or they can save and maybe even
invest it.

Presenter: In your opinion, which lesson is the most important here?

Lora Johns: Definitely saving. It helps children understand that costly goals require sacrifice: you have to cut costs and plan for the future. Requiring children to save part of their allowance can also open the door to more saving and investing in the future. Many banks offer specialized accounts to help children and teenagers learn about personal finance. At the same time, of course, the banks are creating future customers.

Presenter: Could you explain how exactly it works?

Lora Johns: savings account Is an excellent way to learn about the power [bad word] interest. Interest rates on savings can be very low these days. But [bad word] works by paying Interest on interest. So, for example, one dollar invested at two percent interest will earn two cents in the first year. The second year, the money will earn two percent of one dollar and two cents, and so on. That may not seem like a lot. But over time it adds up.

Presenter: Thank you, Lora.

You have 15 seconds [bad word] the task. (Pause 15 seconds.)
Now you will hear the text again. (Repeat.)
This is the end of the task. You now have 15 seconds to check your answers. (Pause 15 seconds.)