Phoebe Lee is also getting ready to implement the tax for her younger children
A mum has revealed why she “taxes” her seven year old daughter’s pocket money. Phoebe Lee, 35, has established what she describes as a “mini democracy” within her home, where her young children vote on certain household matters and contribute modest amounts of their pocket money into a shared family fund.
Phoebe lives with her husband Alex and their three children, aged seven, four and two. While the couple cover all major household expenses, she explains the idea is to give their children a sense of ownership, responsibility and understanding of how public systems function.
The AI architect and founder of Inherit Health, said: “I am aware there are so many decisions that are made for our kids, and they have a lot of agencies in a lot of areas, and we try to give them control when we can. While Alex and I pay for everything, this is their house too – we want them to feel like they can make decisions in their home.”
The system started with straightforward voting exercises at home, inspired by Phoebe’s interest in ethical technology and her husband’s background as a public servant. Brit Phoebe, from Twickenham, said they wanted to introduce concepts such as contribution, community responsibility and decision-making in an age-appropriate manner.
She said: “Being in ethical tech – I want them to learn a lesson. My husband is a public servant and we wanted them to feel that community contribution. We encourage the children to understand where money goes, including donations and public services.
“We handle donations and make sure we donate time or second-hand bits, or my daughter sells bracelets.” Central to the system is what the family humorously refers to as a “fun tax”, where both parents and children put small weekly amounts into a shared pot used for optional extras such as treats or larger household purchases.
Her seven year old currently chips in roughly 20p weekly from her pocket money, with her four and two year old set to participate once they’re old enough to receive some cash. She explained: “She gets £3 a week in pocket money and £1 goes into savings. Then she can make other money from chores, but we are very strict on what they are.
“We haven’t got much in the pot yet, but we are hoping to increase our side and have around £300 by December. The contribution is symbolic rather than financially significant – my husband and I are paying far larger amounts into the same system.
“It’s supposed to be fun tax – we are not making them pay the Wi-Fi or the rent.” She revealed that she and her husband each put in approximately £4 weekly, with intentions to boost adult contributions as the system develops, while maintaining the children’s amounts as an educational tool.
She added: “The tax is about everyone. She will feel like she has contributed, even though it’s much less than us. There’s something in that where she feels like she’s paid for it too.” Phoebe explains the goal is to instil lessons about budgeting and delayed gratification, while demonstrating how collective decision-making functions in reality.
Within the system, the family also holds votes on shared items including activities or purchases, allowing the children to put forward their own suggestions. For Phoebe, the method is fundamentally linked to broader lessons she hopes to impart to her children regarding society, public services and fairness.
She has also discussed introducing concepts around taxation and public services in an age-appropriate manner, citing the NHS and state education as examples of systems supported through collective contribution. She said: “We are trying to keep her informed in an age-appropriate way.
“She benefits from things like the NHS and state school because we pay taxes for them – I want her to start to understand them. I want her to understand the system is designed in the UK to avoid entitlement while still giving children a sense of inclusion in family life.
“It is about bringing them into decisions in a way that doesn’t feel burdensome,” she said. The family anticipates the shared “fun tax” pot will accumulate gradually over time as contributions rise, with Phoebe joking it might eventually fund larger household items such as a trampoline.
She said: “We anticipate to grow the funds… which could buy a great second-hand trampoline. It’s not about control, it’s about understanding how things work in a family, and eventually in the world.”

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