Hi!
Palme School is with you, today we are discussing children's money. How to talk, how much to give for pocket money, why do you need to explain?
What is money?
A couple thousand years ago, in settlements, people exchanged surplus milk for vegetables and useful tools for clothes. And if there was also a surplus of vegetables, they exchanged them for chickens. Over time, they came to a single security paper, distributed denominations, and exchanges became less time-consuming.
Money is now a resource through which we can get food, medicine, toys, and even houses.
How do you teach your child to handle money?
As with any long-term learning process, it's important to train yourself to handle money first. Do you allocate a budget? Do you keep a list of expenses? Do you know how much grocery money goes out in a week? Do you have a financial cushion?
The child's financial behavior will be read from the parent.
Can a child be motivated with money to clean and get good grades in school?
It is important to remember what issue you are addressing with the payment method. Yes, the child will be learning and cleaning. Probably for a long time. But the child will also get external reinforcement that studying, cleaning and other chores can only be done for money, and in the adult world he can get billions doing chores he doesn't understand.
How to give pocket money to a child?
Not before you explain to the child:
- That money doesn't fall out of the sky.
- That pocket money is his little resource that he can manage on his own.
- That no one has the right to take or extort money from him with lies.
It's also worth talking about savings for big purchases, mobile apps and the penalty system.
What should I do if a child has been given a large gift?
It is important to explain the value of this money, to count it towards the number of weekly pocket payments, but to leave the child the right to manage even a large amount of money.
My child took candy out of the store without paying for it. How do I explain that this is wrong?
It is important to convey the seriousness of the offense and all the stages of punishment that would follow in adulthood. Also explain what sanctions you will personally apply if the situation happens again.
Do I need to explain financial hardship and saving to my child?
Absolutely yes. Your child is part of your family's ecosystem. He understands any changes and your personal discomfort. But doesn't know why it's happening and is stressed in an unstable situation.
It is important to explain the situation, income constraints and deadlines if possible. Never blame the child for the lack of money.
How to explain to a child why some people have more money than others.
Like money management, this issue needs to be explained to yourself first. Psychologists recommend talking through the lens of priorities and the fact that the world is a very big and different place. But even when we have less money than someone else, it doesn't make us bad people.
What to read with kids about money and the economy?
Read also our more in-depth selection of children's books about money, broken down by age:
Top 17 children's books on financial literacy. Teaching the value of money from an early age
