The Positives Of
Pocket Money For Kids
Benefits of pocket money:
It allows children to feel independent
By giving children pocket money you are allowing them, to some degree, to be independent and manage their own finances. Children love to be given the chance at playing grown up and while pocket money will allow them to do this, it also teaches them valuable lessons. Many kids will appreciate the fact they have been given this privilege and trusted to handle an amount of money wisely.
Teaches them the value of money
If children don’t learn how much certain things cost they will never learn the value of money. This will come as a shock to them when they enter the real world and have no idea what some things cost compared to others. Children can sometimes think that everything lands at their feet from the sky and never consider that it has actually had to be bought. This is fine when children are very young but by the time they are seven-ish, they need to understand that nothing is free.
Allow them to make financial mistakes before it really matters
Let your children make their own mistakes with money and they will hopefully learn a few valuable lessons about saving and spending before they reach adulthood and have to make some serious financial decisions. Teach them to put a small amount of their pocket money away each month so at the end of the year they can treat themselves to something they really want. However, don’t monitor it and, at the end of the year, if they haven’t saved a penny, they won’t be able to treat themselves.
How to give children pocket money:
Make them earn their money
This is another bone of contention among parents, some of whom feel pocket money should be a given right and some who think children should have to work for it. Studies show that children who have earned their money from doing chores such as washing the family car or helping with the washing, valued the money more and were more careful with it than children who were just handed it.
Ask friends and family how much they give
Sometimes it can be difficult to decide how much to give your kids each time. Do they need just a few pounds or is twenty quid nearer the mark? Consider your child’s age and what they will need to spend some of their pocket money on such as bus fares and lunches. It may also be a help to ask other mums and friends to see how much they give their kids -- this could be a benchmark for you and make the decision easier. Don’t just ask one parent though as they could give an over inflated amount to their child, or far less than will cover the expenses you expect your child to meet with their money.
Keep your side of the bargain and be consistent
Make sure you always give your child what they have earned, consistently and on time every week. If you are late with payment or forget to give it to them, especially after they have successfully completed all the chores that are required of them, they may become fed up and confused as to the point of it.