How and When To Give Your Child Pocket Money
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How much pocket money you should give, when, and why are all important questions you as a parent must decide.
Pocket money is one of the first ways your child develops his or her relationship with money, learns the basics of managing finances, as well as develops an appreciation for money. Ferratum are here to help you as you guide your children into the financial world. Check out our top tips below;
There is no one rule here. The real value of pocket money isn´t only financial, it is to give your child an understanding and appreciation of money, and why and how he or she deserves to earn pocket money.
When you decide it´s the right time to give your child pocket money, it will mark the end of your child having to ask you for this or that when he or she wants something, and instead develop independence.
Unsure when to give your child pocket money? We suggest explaining to your child what pocket money is, and then ask him or her if they feel they´re ready to earn pocket money along with the responsibility that comes with it.
2. The goal?
The goal of giving pocket money should always be to teach your child the basics of responsibility and independence but never to send a negative message like "Here you go son, here is £10, buy whatever you like, now please don´t bother your Mother".
3. How much?
This can be a tricky one for a lot of parents. The best way to approach is to start small and increase the amount as your child gets older.
Initially, the amount of pocket money may be just enough to buy some sweets or a magazine, while as your child gets older, the pocket money can be increased to purchase books, computer games, or clothes.
Earning pocket money will also teach your child the importance of saving for something they really want.
4. How often?
The frequency of pocket money depends on the age of the child and what he or she will be spending his money on. Again, it´s a good idea to start with smaller amounts but paid more regularly.
5. For what?
Many parents wonder whether pocket money and the amount should be based on a reward vs punishment system, e.g. for school grades, for performing home duties, for good or bad behaviour etc.
We wouldn´t suggest a reward vs punishment system for pocket money, however earning pocket money in exchange for chores, for example, is often a good approach as it teaches your child the importance of helping as well as working and earning a salary.
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