My freind Sarah has five kids, four of whom are financially literate , one who isn’t. This last kid is 20, lives at home and has recently been told that his wages must be paid into a bank account.

He went to Sarah and asked , as he hadn’t an account, if he could use hers. She agreed to manage his money from her account on two conditions

1.he agreed to her taking £5 per week for doing so

2.that the £5 increased by £1 for every week he failed to get his act together and get his own account.

Her weekly fee is currently £17 and as he only takes home £178 per week, his Friday nights on the lash are suffering.

We all likepricing models that reward good behavious but we seldom see performance-related fee structures where the onus for good behaviours is on the client (budget airlines being the principal exception).

Differential pricing structures should be more common, especially where they reward overall effeciency. Indulging  the “feckless kid” is no way to bring him up.