One of the most important skills of adulthood is money management. Parents can build this skill in their children by giving them some "spending money".
Why does a child need pocket money
When children receive regular "income", they learn how to manage it: spend, save, plan purchases, invest. The earlier a child starts doing this, the easier it will be for him or her in adulthood.
If your child wants to save, tell them how to do it effectively. For example, it is not necessary to put all the money in a piggy bank and wait sadly for the next pocket money. You can put aside 30% and spend the rest for your own pleasure.
The distribution of money is a very important point. If you think it is right to give 10% to charity and 10% to invest, tell your children about it. Explain why you are doing it and why your child should do it.
Discuss what you can and cannot spend money on. For example, if you are against fast food, explain your position to the children and control spending.
How much money to give and when to give it
As soon as the child is interested in shopping, pocket money can be introduced. It is important to give it out regularly and to determine the amount at once.
The younger the child, the shorter the breaks between disbursements may be. Children have a different sense of time and amount of patience. You can give pocket money twice a month or once a week.
Teenagers can receive pocket money for a month at a time and distribute it as needed. It is important for children to know the exact due date. This way they can plan their spending.
The amount of pocket money depends on the family budget and the age of the children. The older the child is, the more money he or she will need.
Discuss with your children where they spend their pocket money, what they are good at and what they still need to learn. Give advice on how to save money, tips on how to save.
It is important not to be a boss who demands a report, but a friend, a counselor. Then children will grow up financially literate.
