Giving children a weekly allowance is an ideal opportunityto teach them how the real world works.
Pocket money is suprisingly polarising subject. should it be given to children? From what age? How much? What restrictions should apply? The rationale for giving pocket money is save consistently and understand financial reallities. A good age to start would be in kindergarten.
Some parents believe children should earn pocket money by doing chores. Others use pocket money as reward of good behaviour or school performance. Yet others think that it should be independent of expectations about pitching in or acting well. In the end, this is a personal decision.
For one mother of teenage girl, chores are definitely part of the picture. " We drew up a rough budget of what we thought our daughter needed and what she should pay for out of her pocket money," she explains. " We then asked her the same discovered we had a similar amount in mind.
She was able to earn extra by babysitting, and she's also expected to participate in household chores." As for restrictions about what the money is spent on, each family should set its own general rules ( some specify a percentage must be given to charity for instance), but letting children make thier own decision is an important part of thier development.
Having thier own money gives them added responsibility and a sense of independence.
Top Pocket Money Tips:
* Pay it on a set day each week of the month.
* Set up a money box for younger children.
* Opened bank account for older children.
* Discuss what you can afford to pay and how they can aern more.
* Explain how they can save up for things that they want.