Are you pondering about giving a deserving amount of pocket money to your child? Let’s start with the article which describes all the pin points which you need to know as a parent when giving pocket money to your child.
As a parent, if you want to generate a healthy habit of money management in your child, you have to set the pocket money on a weekly or monthly basis depending on your choice.
But from what age do you start to Providing pocket money to a child? How much is it? How does it lead your child to reach a money management goal? And other tips are elucidated in the guide below.
Why is it necessary to Providing pocket money to a child?
To emphasize the significance of pocket money, first give you the key factors which indicate its value to you:
Lead To Money Management
By giving pocket money to your child at an early age, help them to generate a good habit of money organization.
When you hand your child pocket money, they order how much money or where they have to use it for a whole time period? These decisions and organizational strategies help them lead a money management goal which adds the value of money to their lives.
Let Them To Save
The next key behavior which you can analyze is savings for the things they really want to purchase. If they wanted to buy any product related to any category, they tried to save a few bucks from their pocket money throughout the months or weeks.
It gives an Intense feeling to them when they finally purchase the thing which they have saved for them. In the future, this habit encourages them to save for the contretemps.
Power— Give Independence
By handing your child a pocket gives them a little independence about the money which they own. This will make them spend money on the right place or things which they require or want.
From a young age, this independence gives them a power to make the right decisions and they learned to not rely on others for their needs, which becomes the reason for their victory or progress. Read How to Stop Your Children Spending Money Online.
Right Age For Providing pocket money to a child
There is no age restriction for a child to give them pocket money, you can start it from the age of 4 to 5 years. This is the period of learning zone for kids, the best time to teach them about money-managing or spending habits.
But your child is appropriate for it only when it is able to realize these things:
- The spending amount of money never comes back to them.
- They do not spend it all in a day.
- They get the pocket money only on the decided date.
- They need to save money for the special desires they want.
How much is the pocket money?
How much is it? The major question which surrounds your mind when you think about giving your child pocket money. To finalize the pocket money, you need to get these points into consideration:
- The pocket money depends on your financial stability, according to the family budget.
- You can also decide by viewing similar families how much they pay their child?
- The age of the child also matters while deciding on the pocket money.
- It must fulfill the basic needs of your child throughout the whole period.
- If you expect them to cover some extra expenses, then it requires you to add a few bucks more to their pocket money.
The amount of pocket money varies according to the age or family financial condition. If you have just begun to give your child pocket money at the age of 5, it may be $5.99 per week. Like if it is 17 years old, the amount may be $19.30 per week. In the USA, typically the pocket money amount ranges from $6-$20 for 5-19 year children.
What Pocket Money Includes?
What pocket money includes? Reflects to the question what you give to them.
But mostly, if your child is school going the pocket money you give to them can cover the following things:
- Snacks or lunch for school.
- Manage their small desires like toys, crave for ice cream or others.
- Transport expenses.
- Enjoying movies, video games or other entertainment you want with it.
These are the basic things which your child has to manage or cover. When they grow or reach an older or teen age, give them more responsibility by adding a few other expenses to cover, which makes them fully ready for the real world.
The other basic expenses which old kids or teens have to cover are:
- Mobile top up.
- Stationary, books, sheets or other school expenses.
- Party night with friends.
- Treats or outings with friends.
- Gym expenses.
Rewards Or Earnings
You can reward your child for their good behavior other than pocket money, which also encourages them to manage money in a righteous manner which minimizes their mistakes.
If your child wants an additional bucks of money to save, you can provide him with tasks (household chores) to do from which they can earn, like doing the dishes, washing a car, cleaning the garden, making a bed or more other tasks they can do. This also reminds them of the value of hard work and gives them the potential to earn.
Basic Rules of Providing pocket money to a child
Not make these mistakes! when giving your child pocket money. Beyond many of its advantages, there are also some errors which occur if you do not take these points under cogitation:
- Not giving a higher amount of pocket money, give them according to their age, need or your financial health.
- Before giving pocket money to children, you must brief them about money management and how to spend or save it.
- Set their limits or rules where they cannot spend too much, like on video games or parties.
- The amount of pocket money should be fixed.
The Bottom Line
The major point on which the pocket money depends is your financial health. Give them allowance accordingly.
Pocket money induces in your child a good money management habit, makes them responsible, generating a virtuous saving, spending or earning behavior in them.
How much pocket money should kids get?
In general, 50 cents to $1 per child’s age is a reasonable amount. How much you can afford to pay on a regular basis.
What is pocket money in child development?
When your kids are young, giving them pocket money is a great way to teach them money management.
It is important to provide children with direction while they learn how to budget, save, and manage their money.
By giving pocket money you can teach and empower children to spend responsibly and spend independently.
What age should a child get pocket money?
Many parents start handing out pocket money around school age, according to MoneySupermarket.
The majority of pocket money apps are designed for children under the age of four, and use fun reward charts to teach them how to earn their money. However, eight seems to be the magic number.
How do children earn pocket money?
To promote a sense of earning, tie pocket money to chores such as tidying up and washing up.
Young children can learn about money by playing with toy cash registers and playing shop at home.