Even at a young age, earning even a tiny amount of money may teach children the value of money and how to effectively handle it. When a person has a tiny quantity of money, they must decide whether to spend it immediately or learn the importance of saving.
The act of saving teaches your kid to set objectives, wait gratification, and acquire the things they want.
Learning about fiscal repercussions
Children are no exception when it comes to financial missteps. When we lose money or spend it irresponsibly and experience the repercussions, we gain financial maturity. Allowing your children to make such mistakes with little sums of money and experience the repercussions is an excellent way to influence their concept of money.
A feeling of independence
Providing your kid with a little amount of their own money is an excellent method to teach independence and responsibility. It provides children opportunities to make decisions for themselves and discover what they want and like.
WHEN TO START
Again, this is up to your discretion. Your youngster may be ready for pocket money if they can comprehend this:
Things can only be purchased with cash.
Even if you spend everything today, you must still wait until the next payment.
It it better to preserve some money for the future than to spend it all just because they have THE “RIGHT” AMOUNT?
Adapt the amount of pocket money you give your kid to your household’s budget, your own sense of what is appropriate, and the degree of financial independence or spending power you feel comfortable giving your child.
Consider your child’s age, emotional development, the duties they must do to earn it, and your budget before making a decision (what the money has to cover). It doesn’t matter how much pocket money a youngster receives in terms of the advantages and lessons they may get from it; it’s more important that they have any.
WHAT TO DO WITH IT
The only guideline is that you should always be aware of what your kid purchases. They might spend their money on specific games or toys, room decorations and posters, movie tickets, gifts for relatives or special events, and a special lunch or supper out.