Pocket money: when & how much? | Raising Children

Pocket Money

pocket money

Do you give your kids an allowance or 'pocket money'? 

If not, perhaps it's time you started. Giving a child an allowance has numerous benefits, and it inculcates a sense of responsibility in your child. 

How much?

Be logical about the amount of pocket money you are giving your kids. If it is just a token and you know your kids will come running to you the minute they need to buy something exciting, and you won’t hesitate to fork over the money (if, of course, you feel their demand is reasonable), you're not doing the right thing. 

Let your children learn that they have to save up to buy something they really want. Don't let them get into the habit of running to you every time they need more money. But in order for you to do this, you have to give them a reasonable allowance every week.(Here is an article on we can be  effective parents  https://ranjith1977.blogspot.com/2019/08/postive-parent-child-relationship.html

Weekly or monthly?

First of all, you have to decide if you want to give your child a monthly allowance or a weekly allowance. Usually weekly allowances work better with children. 

Money Management

Giving your children an allowance teaches them how to manage money, and this will come in handy throughout their lives. Even if your kids make a bad decision, they will learn in a safe environment, as the sum involved is fairly little.  Your kids will learn budgeting, saving and spending. They will learn to look after their money. The advantages of giving your child an allowance are tremendous, so don't slack off.

When should you start giving your child an allowance?

When your child turns six, he should be old enough to accept the responsibility. Explain that you are going to be giving him an allowance, and he has to be responsible with the money, as he is not going to get any more from you until it's time for his next allowance. Sit with him and help him chart out a budget.  Schoolbooks and your child's lunch money should not be part of the allowance. But if he loses a schoolbook then he would have to use his allowance to buy it. 

Household chores

Encourage him to start working to increase his pocket money. However, don't pay him money for daily chores around the house like making his own bed. But if he does an additional which takes time and labour, like perhaps cleaning out YOUR cupboard, then you could give him some extra money to compensate. So, you child will quickly learn that he would have to 'earn' a living - the world doesn't owe him anything and he's never going to get something for nothing.