5 Reasons Why Giving Pocket Money Makes Sense. There Is No Doubt That Parents Who Do It Make No Mistake

    5 Reasons Why Giving Pocket Money Makes Sense. There Is No Doubt That Parents Who Do It Make No Mistake

    5 Reasons Why Giving Pocket Money Makes Sense. There Is No Doubt That Parents Who Do It Make No Mistake
    Greg
    6:30 PM EDT, October 26, 2021

    Parents are divided over the issue of pocket money. While some are worried that the kids will squander the cash immediately, other believe that this is a very good lesson of saving.

    Money comes from cash machines

    Many children are not quite aware of where their parents take money from. They believe that mum and dad simply go to the nearest ATM and withdraw the cash any time they want to buy something. They see no link between the jobs and monthly salaries. And that is a good reason to show them how it actually works.

    Annie Spratt/unsplash
    Annie Spratt/unsplash

    Why does it really make sense to give your child pocket money?

    A lesson of money management

    Kids need to learn how to take care of their budget. You have to explain that the money they receive have to cover all their little expenses as the next amount will be next month. They have to be aware that once they start receiving pocket money, toys and ice-cream is something they have to pay for themselves. There is no chance they will get anything extra if they run out of cash too early.

    • A lesson of independence

    Giving your children pocket money you teach them independence and show them that you trust them. They should feel that receiving your money they also receive your trust in their wise spending decision. Of course children are bound to learn from their own mistakes and be free to buy whatever they want. You can't control their spending; hints and clues is all you ought to rely on. Otherwise they will never feel what it means to be responsible for their own mistakes.

    Robo Wunderkind/unsplash
    Robo Wunderkind/unsplash

    • A lesson of spending

    If you notice that your child instantly spends everything, take them to a supermarket to show them how you can plan spending. Show them how to compare prices of specific products and teach them how to make shopping lists. This is a fantastic way of controlling the budget. If you still have doubts as to what your children spend their money on, ask them to draw a weekly or monthly spending report.

    • A lesson of saving

    It is a good idea to inspire children to set a saving goal, something they will put their cash aside for. This will teach them to save and how to give up on little things to be able to buy something 'bigger'. They will also learn the differences between prices of various products.

    Sandy Millar/unsplash
    Sandy Millar/unsplash

    • Appreciating the value of money

    Children have to be aware of the fact that money does not come out of the wall. They should know that it is thanks to their parents saving that they can afford things. If you give them let's say $40 a month, why don't you suggest that they should put aside at least $20 to buy something they have been dreaming about?

    Next month ask them (before you actually give them cash) how much they have managed to save. If it is the amount you have agreed on, you have got to compliment your child, or even reward them. This is to teach them that little steps make sense.

    However, if your kids haven't managed to save anything, ask them to contribute to tickets the next time you go to the cinema. It is to show them that the things bought for the money we have saved have a greater value and we can feel proud once we are able to do it.

    How to give pocket money?

    • the money has to be given on regular basis (one a week or once a month);this is to give your child a sense of security and let them plan their spending,

    discuss the things your child can buy and what will be still paid for by parents,

    • you have got to be consistent and tough; if your child spends everything within a day, don’t let them manipulate you into giving them more.

    Josh Appel/unsplash
    Josh Appel/unsplash

    When is the right time to start giving pocket money?

    • when your child can count

    • when they understand that saving helps you buy expensive things

    • when they are aware that it is only them who will pay for the little things

    Annie Spratt/unsplash
    Annie Spratt/unsplash

    How much should we give them?

    Everything boils down to the age of the kid and, of course, financial situation of parents. Of course the young ones do not need big amounts as all they spend it on is sweets or toys (if they manage to save up for that). The older they get, however, the bigger the needs, so the amount of monthly allowance should increase, too. Teenagers go out more often and their hobbies can be really costly.

    Katie Emslie/unsplash
    Katie Emslie/unsplash

    Should we pay children for doing household chores?

    It is a rather complicated issue so there can’t be a simple answer to it. Some parents are sure that under no circumstances should parents pay their children for cleaning or washing ( last but not least we all live under one roof and parents don't get paid for their duties, either).

    If we agree on a more commercial approach, then we have to tackle the problem of how some works can be estimated. Is dusting worth as much as hoovering?

    Others claim that money has to be earned and housework is a perfect opportunity to practice that. Besides money reward makes a good incentive for kids who are not quite willing to take out the garbage or clean up their bedroom.

    CDC/unsplash
    CDC/unsplash
    Do you give your children pocket money?
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