The money diary does not match: follow the balance one event at a time
By Erik Nilsen · Kroni3 min read
A money diary can look tidy yet contain an incorrect sign or total. Start with a known amount and update the remainder after each actual event. That shows where a difference arises instead of changing the final figure without explanation.
Choose one kind of money for the sheet
In a hypothetical example, you count cash your child actually has. The opening amount is 100 units. They receive 40 of agreed allowance, spend 25 on an optional item, receive a gift of 10, and spend 35 on another item. All figures are arbitrary teaching numbers. Money an adult has not yet given and virtual balance do not belong in this cash column.
After allowance, the remainder is 100 + 40 = 140. After the first purchase, it is 140 − 25 = 115. After the gift, it is 115 + 10 = 125. After the last purchase, it is 125 − 35 = 90 units.
Write four rows showing the event, money in or out, and the resulting balance. Also check the whole calculation: 100 + 40 + 10 − 25 − 35 = 90. The running calculation and complete sum should match.
Find the error before changing the figure
If the last purchase is added instead of subtracted, the sheet shows 125 + 35 = 160. That is 70 above the correct 90, rather than only 35. Switching minus 35 to plus 35 moves the answer in both directions. A large difference can therefore come from a single mistake.
A realistic snag is finding cash that does not total 90 and assuming your child spent money without saying so. First check dates, receipts and what actually arrived. A promise recorded as received, a duplicated item or a counting error could also explain the difference.
Do not invent an expense simply to make the final balance match. If you cannot find the explanation, label the difference unresolved and note the amount actually counted. Investigate further without treating a guess as an event.
If cash moves into a money box, decide whether the sheet counts only the pocket or all your child's cash. Moving money between places is not automatically a purchase.
Ask your family: “After which event do the figures start to differ, and what do we know for certain about that event?”
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.
