Pocket money: for and against
Pocket money: for or against
Hard to say when the idea of giving money to children for pocket money became so common.
It seems that only children could come up with it, and adults should have just laughed at the child's spontaneity and cunning, leaving everything as it is.
And yet, suddenly, we find ourselves in a world where millions of parents regularly issue pocket money to children, sometimes in exchange for household chores, sometimes for no reason at all.
Experts have not yet agreed on a satisfactory opinion on pocket money for children. Some say that's how children learn responsible financial management. There are those who believe that these lessons are taught to one person: parents will always be there to give money. Is there any wise approach?
There are three main categories of attitude to children's pocket money. Let's try to formulate them.
1. Home duties are work
Please, this is the most common practice of handing out pocket money to children: here is a list of things to do, do and get paid. The biggest advantage of this approach is that you immediately instill in the child the idea that money is given in return for work, the concept is easy to understand.
Yes, and parents also have the opportunity to do more around the house for a small fee (children understand from the very beginning that the employee has very little room for manoeuvre in the negotiations about the salary).
The arguments against this are usually: children get used to the fact that they can expect a reward for doing normal household chores. What's wrong with that?
2. Money just like that
This was the situation for your “cool” primary school buddy, which you didn't forget to remind your mother every time you were asked to do something around the house. In this world, pocket money is just a matter of fact – a fair price for what you are.
Critics will, of course, say it gives children the wrong idea of how adults get their money and protectors learn to manage their finances wisely without the obsession that the sweeping floor in the living room must be paid for.
3. No money, no problem
Dien out of ten children in the survey said they were the least likely to like this approach to pocket money (the survey wasn't really conducted because it's already clear what the results would be), but many parents like this approach. What children lose in the plane of disposition of their own money, they more than pay off, “not holding on to unrealistic expectations”.
Of course, in this question there is no one correct answer.
All families are different, the same children do not exist, so parents sometimes have to try several approaches to understand which is more appropriate in their context. And that, of course, is also an extremely important factor.) But what do researchers say? In 2000, a study entitled “Improving Financial Literacy: What Schools and Parents Can Do and What Can't Do” led to unexpected conclusions. The study examined how different approaches to pocket money for children affect the preparation for “financial responsibility” in adult life.
In short, the results were not very different from each other, but they were very intriguing. Children who did not have pocket money turned out to be the most financially literate, having received an estimate of 52.5 percent during the testing. Children who received money in exchange for doing household chores followed them immediately – 52.1 percent.
Received money simply for nothing, automatically and regardless of the execution of home orders, scored the smallest number of points – 49.1 percent.
Without analyzing the cause-effect relationships of such results, it is difficult to explain anything. But most experts agree on one thing: Whichever approach you choose, children need to talk about it.
You give them pocket money or not, the channel of communication as to why you give (or don't give them) money should remain open, as well as the discussion of sound management of their own finances.
Some parents even force children to divide the money into “savings” and “expenses”.
This is the most important thing, if you give your children money, not just give it to them, but also include in the amount you give them a talk about how to manage the money you get.
If you don't give money to your children, don't think that it frees you from having to talk about saving and spending wisely.
No matter how much or how little money your kids get, the best way to get them is to give them advice on how to manage their money in the future.
Pocket money for children: for and against
Hello, my dear readers and blog guests! Today I want to talk about pocket money for and against children. Moreover, this question will always be relevant in the relationship between parents and children.
How can I teach my children how to use the banknotes rationally? How much to give out and how to control it. These and other questions are constantly on the minds of parents.
Approaches to this issue are different, someone is in favor and someone is strongly against it.
Arguments for the disbursement of funds
Financial arguments in favour of disbursing funds to children include the following:
- develops independence
This child is expected to be able to plan his or her own budget when he or she receives money for his or her own personal needs. Parents who decide for their offspring what to buy and what not to buy make him dependent on their decisions. By disposing of the banknotes on their own, a teenager can understand that the number of banknotes is limited and should be spent wisely.
- makes it possible for the child to feel “at the level”
Lack of pocket money can make the child feel inferior among his or her peers. Because his friends will probably have them. You can ask other parents how much money they give to their children for their personal needs, so they don't overstate or underestimate the amount of money they receive in your situation.
As a result of receiving a certain amount of money for expenses per month, a teenager can dispose of it at his or her discretion. He can save up for a bigger purchase or spend whatever he wants. So he can understand that money is important, and he needs to spend it rationally.
Arguments against the granting of funds
The following can be highlighted as the main arguments against the granting of funds for personal expenses:
- kids do not know the price of money and will waste it
All young children, according to psychologists, do not need to give it away. At this age, parents can buy everything they need for him. It is necessary to start gradually disbursing funds for personal needs from school age.
- this will develop an irresponsible attitude in the child
Giving out pocket money it is necessary to make sure that it does not become a habit for him/her. Over time, when he realizes that he can get a lot of interesting things, he will demand more and more, and take finances for personal needs for granted. In this case, it is better to specify and issue a fixed amount.
- this will lead to the development of envy and greed
These factors will be present in the child in any case, with or without money. Financial resources are not the main factor in the development of these negative features in the offspring, the personality features are formed before the birth of the baby.
- a teenager can earn his own living
Send a child to hard work, of course, but he may well be able to earn money in his spare time, for some interesting things or pocket money. The main thing in this question is that the part-time jobs do not interfere with learning.
When and how much to issue
The amount may depend on the following factors:
If it is still very small, and has just started to learn how to handle the money, it is better to split the monthly amount and issue a little bit. Like breakfast at school, a compote or a bun. In adolescence, you can give the whole amount, but you can also specify the amount of monthly donations.
- where he can spend the money
Many parents care how he spends it. Will he buy alcohol, cigarettes and other illegal substances. If the family lives in rural areas, the child may simply have nowhere to spend the money.
- financial status of the family
The amount of the monthly allowance for pocket expenses depends on the financial status of the family. Somebody can give more, somebody less. This is determined individually.
- Agreements with parents
There is often an advance arrangement between parents and children for pocket expenses. In some families, there are certain conditions under which funds for personal needs are given to children, and under which they are not.
When giving out funds to a child, it is necessary to take into account that this should not be influenced by the following points:
Kid should not learn only for the sake of reward. Then it'll be more like a job than a study. The process of obtaining knowledge is fascinating and interesting. If the child does not want to get knowledge, the fee for good marks will make it interesting.
- homework quality
Children are not maintenance personnel, who can be deprived of income in case of poor quality cleaning. Such parenting behaviour will lead to family estrangement and conflict.
If a child is not doing well at first, it is necessary to show how to do it right, explain what is wrong.
He should not perceive family relationships as a price list where everything has its own money equivalent.
This behavior can lead to the development of psychological dependencies and various kinds of deviations. The child should understand that love and attention cannot be bought.
Discipline and obedience in the teenager should be brought up as a personal example, not as a monetary subsidy or deprivation. Of course, in some cases, the offspring can be limited in financial means, but it's not worth manipulating all the time.
Pocket Money Rules
Think of certain cash rules to make sure that they are strictly adhered to:
- do not change the agreed rules without agreement
Example, if you have agreed that you will give money for pocket expenses on Tuesday, then it is necessary to do so. If for any reason the conditions change, it is necessary to agree it with the teenager. Thus, by personal example, you show that you follow the rules and are disciplined.
- should not unreasonably increase or decrease the amount
The amount for personal needs between you and the offspring should also be agreed upon. Even if you can give more, you shouldn't unreasonably increase your financial aid. There is never much money, and the baby can just get used to significant amounts, and he or she won't be happy with it anymore.
Don't cut the total amount without explaining the reasons. In a difficult financial situation in the family, explain everything as it is and say that it is temporary.
Pocket money belongs only to the child
Medium that is given to a teenager for personal use should not be used to buy clothes or food. They are entirely theirs, and the person can dispose of them at will.
- if the teenager spends more, then deduct that amount from the next issue
Don't encourage them to be irresponsible. If the monthly limit is exceeded for pocket expenses, deduct this amount from his budget for the next month. Don't indulge and give any more, it shouldn't be seen as a bill machine.
- if the child is spending money irrationally, give it away in parts
Divide the monthly amount into several parts. Do it until the child learns to save money and spend it rationally. Usually, parents use this method for primary school age children.
Go to the issue of pocket money for the child with all responsibility, as it is at this point that it is possible to form the right attitude to life in general. He or she will be able to learn how to plan his or her budget properly, and how to use the funds allocated to him or her rationally. Subsidies from parents should not depend on their mood and the level of success of the offspring.
With age, children have more and more interests, and it is not surprising: what attracts the attention of a three-year-old is unlikely to interest a teenager. And one day, the time comes when a child comes to realize their need for pocket money.
Oh, whether teenagers need money for pocket money, as well as the pros and cons of pocket money you will learn from this article.
What do I need my pocket money for?
Children are gradually becoming more independent of their parents. They have their own circle of communication, their own classes and habits at school. A school-age child is an almost mature person.
But at the same time, he has not yet decided on his life goals and continues to experiment, learning from his mistakes and gaining such an important life experience. And often this experience requires financial investment.
As well as being in the community, in the school community, a child wants to have his or her own money, at least not to look like a white raven among the more “advanced” classmates or, conversely, to stand out from the crow and “let the dust in the eyes” comrades.
Why else would you need pocket money? In order to be able to have a snack at a break, as well as to travel by subway or shuttle bus, to buy sweets and to satisfy other children's desires and needs.
Many people are concerned about how much money to give to children. There is no single answer, because it depends on the financial well-being of each individual family.
With the amount of money that is allocated to a child, you can decide by gathering a “family council”, which must be attended by the child himself.
Let him tell you what needs the money, and depending on this will be determined by his weekly budget.
Pocket money: pros and cons
Parental disputes over whether children need pocket money, or whether it is better to dispense it in batches, for specific purposes. Let's see what's more about pocket money – pros or cons?
The benefits of pocket money for children are as follows:
- The child learns how to use the money from childhood, how to plan his or her own expenses, and sometimes how to save. This useful skill will be useful in the future.
- Pocket money will help in an emergency situation when you need to call a taxi, buy a medicine, etc.
- The child can buy what he or she thinks is best for him or her, rather than convincing his or her parents that he or she needs it, and not begging for money.
- For teenagers aged 14 and over, pocket money is doubly important: it makes them feel more confident. With your savings, you don't have to ask your parents for money every time a guy needs, for example, to invite a girl to a movie and buy flowers. And for the girls themselves, a certain financial independence is no less expensive.
The downside of the money coin is the following disadvantages:
- The child quickly gets used to the fact that the money is always in his pocket, and ceases to appreciate it.
- Children can spend money that their parents give them not on food and transport, but on cigarettes and low-alcohol beverages. This is not uncommon, especially in high school. It's useless to fight it by depriving a child of pocket money. This problem should be solved with preventive talks about the harm of these habits.
- The teenager gets the money without any effort. You can fix this situation by offering to try to find a substitution.
How to earn pocket money?
For the child to experience what it is to earn money and to continue to appreciate his or her work and that of their parents, give him or her the opportunity to earn money for pocket money. That's what it's for:
- work as a promoter (distribute flyer, participate in various promotions);
- work on the freelance internet exchange (for schoolchildren a simple job as a freelance writer or, if they have the appropriate skills, processing digital photos to order);
- if a child is fond of handicrafts, they can organize the sale of their most successful crafts.
Pocket money is not an urgent need for children, but it helps the child to learn to feel adult and responsible.
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Pocket money: for and against
In our country, there is no law requiring parents to give pocket money to their children (for example, in Germany, the authorities recommend to parents how many euros to give to children of different ages per month). It's always up to the family to decide whether or not to give. But only parents can teach a child how to handle their finances properly.
Articles of opponents of pocket money:
- everything the child needs is already there;
- he will still spend it on nonsense;
- he will not know the price of money;
- he will become greedy, he will blackmail parents.
This risk does exist if parents do not try to raise their child to the right level of money, but simply pay it off:
- give the child haphazardly large sums;
- do not tell how to use the money rationally;
- do not discuss unreasonable expenses with the child, but scold the child for them;
- use the whip and carrot method – give or not give money depending on the child's behavior.
Pocket money arguments:
- the child will learn to set and achieve financial goals;
- will understand the price of money, will learn to save and spend wisely;
- not only learn to use cash, but also master modern means of payment (bank card, electronic wallet) – with the support of parents
- will not be complexed against the background of peers who have money for pocket expenses – and this is important for teenagers.
This positive influence of pocket money is only possible if the parents themselves act responsibly:
- provide the child with small amounts of money on a regular basis (regardless of their behaviour or school grades);
- helps them to choose the tools they need to accumulate (be it an envelope, a piggy bank or a bank card);
- discuss with the child his or her expenses, rights and obligations in relation to money, share their experience, analyze his or her experience – the topic of money should not be embarrassing and uncomfortable;
respect the rules: For example, if a child has spent all the money given to him for a week per day and asks for more, he will have to wait for the appointed day.
In general, psychologists agree that pocket money is important for the child's financial literacy, but only if parents' attitudes are correct.
From what age can you give your children money and how much?
The Civil Code allows you to make small transactions from the age of 6. Small transactions are purchases for small amounts of money, everyday expenses, for example for bread in a bakery.
As a rule, by this age, children already crave independence: “Mom, you go away as if I'm buying alone”. As a rule, the older the child, the more pocket money he gets – and the greater the responsibility for the way he disposes of his funds.
The amount depends primarily on the income and expenses of the family. It may be reasonable to ask (the child, other parents, the teacher) how many classmates he or she is given on average. It is important to balance the child so that he or she does not feel deprived, but also so that he or she does not appear to be inappropriately rich in comparison to other children.
Paying children for homework?
Not to monetize each other's care because homework is a shared family business.
A child has responsibilities to go to school, do homework, clean up his or her room, and help parents with their household chores.
But there may be extraordinary tasks that a child can do (alone or with the help of adults) with money. For example, painting a fence at a neighbor's cottage, setting up a computer or creating a website.
Do you need to control your child's spending?
Yes, but you need to do it delicately so that control does not turn into surveillance and so that children's pocket money does not become parental money.Trust on the part of adults in the issue of pocket money is as important as responsibility on the part of the child.
Now there are financial instruments with which the child feels responsible for their money, and parents can unobtrusively watch their expenses.
For example, in many banks you can have an additional card to your account, set a limit on it and give it to your child – he or she will be able to manage the card himself or herself.
A parent will receive notifications of all transactions and keep track of the child's expenses: how much and what he or she spent, how much he or she saved up.
Errors and thoughtless spending will certainly occur, but lessons learned must follow – this is the price of financial literacy.
How can we help children learn how to save, treat money wisely and rationally?
Advertising slogans shout: “Buy now, take a loan, live in one day”.
Adults fall into the trap of consumerism, what about children? It is important to convey a logical sequence to the child: “I have a goal, I limit myself to something for it, I act consistently and approach it, and in the end I reach the goal”.
On the example of money, this relationship can be seen as clearly as possible: either I buy myself an ice cream every day, or in six months I can buy the desired toy. And in the future, this understanding will be very useful for the child.
The tools a child can use to save
The classic sealed box is suitable for young children who are just starting to receive their personal money.
For older children, it is not very convenient, because it is impossible to understand how much money it already has and how much money it has left to save. Children want to break it and check how much is there.
Instead of a piggy bank, you can create a jar with a lid and mark on it, how much is accumulated and how much is left to the goal.
Envite the child to draw what he or she wants to save up and hang the drawing in a prominent place. You can attach an envelope to the drawing where the child will collect the desired amount.
The “I want” list
The easiest wish list also helps to focus on the goal.
Bank card or e-wallet
This is a more advanced way to get a card or wallet for a teenager, but an adult has to get one. The child can monitor his or her balance using the application on the phone or request it via SMS. By saving, he or she can see how much money is already available and how much remains to the goal – and this motivates him or her to save further. From the age of 14, a teenager can already make a deposit with the bank.
Start with you
If parents don't let go of their phone and eat in front of the TV, and the child is forbidden to do so, will this ban make sense? This also applies to financial education.
Financial literacy rules for adults:
- not to spend more than you earn;
- not to take indiscriminately loans;
- use financial instruments to save and accumulate money;
- have a financial airbag>
- to know where to find the right information about financial and financial instruments>
- to find out where to go if your financial rights are violated.
If parents take out loans for luxury goods, but neglect savings, alternate throwing money in the wind with austerity, will they be able to instill in the child a sensible attitude to money? For adults who set an example for children, it is important to be prudent about their spending, be financially prudent, and control income and expenditure.