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What is bonus and how does it work?
What is bonus and how does it work?
Elin Westerberg avatar
Written by Elin Westerberg
Updated over a week ago

The Bonus in the Gimi app works a bit like interest.

Money can grow if you save it. The more and the longer you save, the more the money will grow. Understanding this relationship is incredibly important, yet difficult. So introducing the concept of interest at an early age is a great way of teaching children a valuable financial lesson that they can take with them into adulthood. And the fact that children tend to get more motivated to save when they get a bonus is not a disadvantage! We recommend setting a bonus rate that is both:

High enough to generate interest at a reasonable savings amount.

Low enough to not generate a too high bonus in relation to the allowance amount.

The bonus is paid out at the same time as the next allowance, so either weekly or monthly, because regularity makes the concept of interest easier to understand, opposed to only getting it once a year.

Please note that our bonus system works so that everyone sets the bonus they consider appropriate for the child. For example, in order to achieve a 1% bonus, two people who transfer an allowance should set a 0.5% bonus. You can do this in allowance settings. The idea behind this approach is to make it easier for parents who want to give different bonuses.

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