Do your children receive pocket money every week? Is it starting to take a toll on your finances, or do you feel frustrated that your hard-earned money is being wasted or going unappreciated? Many parents feel that they provide more than enough for their children without pocket money included. Some parents worry that their children will start to expect ‘free’ money instead of seeing it as something to work for. If you are debating whether to give your children pocket money or not, here are some insights for you.
Pocket money can teach good values
If a parent is simply doling out money to their children every week, it is true that those children might not appreciate the value of that money. However, there are several ways in which parents can help their children learn good money skills through pocket money allowances. Pocket money can be earned, for example. Give your child certain amounts in exchange for chores or good behaviour. This way, the more they work the more money they can make – you will also appreciate the extra house help! Good saving and investment techniques can also be applied to pocket money. Children can be required to put ten percent of their weekly pocket money into a piggy bank, for example. Or perhaps divide their pocket into money for necessities, treats and savings. They can also learn about interest rates, as parents can increase children’s pocket money each year or after certain time periods.
Is it really necessary though?
While pocket money can teach children valuable money skills, the fact remains that it is money out of the parents’ pocket. What about families who cannot afford to hand out pocket money every week? If you are unsure if pocket money is feasible for your family budget, remember that pocket money doesn’t have to be a lot. Think about the value of exchanging pocket money for work around the house, that way both parent and child can benefit. In today’s economy, more and more parents are choosing to forgo children’s pocket money, so it is up to the individual family to decide whether it is an affordable option for them or not. Contact One Debt for more money tips for the whole family!