Giving pocket money to children and teens makes them responsible. They get to handle money and slowly start having an idea about the utility of money. It makes them conscious of the real value of hard-earned money. It also gives children and teens an idea about money management. They get to know how to spend money and also how to save money for the future. This concept of saving money also teaches them how to wait for getting an achievement in life and be patient.
At what age and time do children become eligible to get pocket money?
There isn’t any absolute answer to this question. Everything depends upon the situation in which the child or the teenager is living and the other associates. But there is something very important to note about this aspect of giving pocket money to children.
It is that your child must be able to understand certain things which not only makes him/her eligible for getting pocket money but also to handle money. Come, let us see what are those qualities in your child.
- Your child must take into cognizance that he or she cannot buy any and everything they see around them with their pocket money. They must understand that saving money is also very important.
- They might be in such a situation which demands money to buy things.
What amount of pocket money should be given to a child?
The answer to this question is a one-word term, i.e., circumstance. It depends on the situation of your earnings and the needs of your child. So, everything depends on the circumstances in which your child or teenager is living.
Your decision about the amount of money can be based on:-
- Your family income
- Monthly budget of your family.
- The age of your child
Some vital tips to parents about their child’s pocket money
Giving pocket money to children is not an easy job. One needs to think of all the possible damages that can happen in this regard. Money is a very tricky thing. Only when it is put to good use, the outcome is positive.
But, in many cases, children or teenagers lack the sense to use money wisely. They use it for things that give out a negative outcome that can be harmful to them , and the family . So you need to think about many aspects while you are giving money to your child in the form of pocket money.
Here are some tips that can be helpful to you in this process.
- Try to pay the money on a set day. You can choose to pay the money weekly or daily. This will help your children to learn how to wait for something they wish to get. Your child or teenager can demand exorbitant pocket money influenced by his friends or associates. In this kind of case, you must make your child understand the difference between need and luxury. You can take the help of any example to make your child understand that the amount that is affordable to other parents might not be an affordable amount for you. This will make your child understand various sociological and economical factors.
- You must give a clear explanation to your child about the purpose of giving pocket money. Here also you need to encounter the tussle between need and luxury. You must make your child understand that besides covering the need out of your given pocket money, he or she can opt for luxury or comfort, but that too on a given range and limits.
- You must try not to make your child an advance payment of his or her pocket money. This will help him to manage whatever remaining money he has. If by any chance, you are paying advance payment to your child, then you must make him acquainted with early payment and re-payment plan.
- As goes the common proverb, “Charity begins at home”, you can introduce noble values to your child. Money, as said earlier is a very tricky thing. It can drive people mad, especially in the case of young people. Money can be used in different ways. It can be used for savings, donating as well as spending. Channelize your child towards donating to the ones who are in need and helping them with their pocket money.
- Make your child learn about the art of saving. You can teach them about the value of saving money and how it comes to use in difficult times. You can try to deposit the pocket money of your child directly to their banks. There are neo banks for teenagers that offer debit cards and easy banking. This prepaid card for teens will help them to be easily acquainted with digital money.
Utility of giving pocket money to children
There are various utilities of giving pocket money for children and teenagers. It makes them learn about a variety of things. Let us see what are the benefits of giving pocket money to your child or teenager.
Opportunity cost- Opportunity cost is a concept of Economic theory. In simpler terms, opportunity cost means that in order to buy one thing you need to give up buying something else. This is a kind of life lesson that a child must learn from an early age. It makes them conscious and wise consumers.Spending- Money is something, which cannot be brought back when it is spent. So, children must learn from a very tender age about the value of money.
For an adult, giving pocket money to their child or teenager can be a trivial thing. But for a child, there are a lot of sentiments associated with it. So you must handle this segment with utmost care.
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