pocket money is a small amount of money that parents give to their children on a weekly or monthly basis. It serves as an allowance for children to spend on their own personal wants and needs. However, the question of whether pocket money should be given to a child or not is a topic that has sparked debates among parents and experts. Some argue that it teaches children how to manage their own finances, while others believe that it can lead to irresponsible spending. In this essay, we will explore the pros and cons of giving pocket money to children, as well as ways on how to save money from pocket money.
The Case for Giving pocket money
There are several reasons why parents choose to give pocket money to their children. For one, it can teach children the value of money and how to handle it wisely. Giving them the responsibility of managing their own funds at a young age can be a valuable lesson that they can carry throughout their lives. It also gives them a sense of control and autonomy, as they get to decide how they will spend their money.
Moreover, pocket money can also be a good way for parents to reward their children for good behavior and for completing household chores. This can serve as motivation for children to do their chores and behave well, as they know that they will receive a reward for it. It can also be a great tool for parents to teach their children about budgeting, as they can set a certain amount of money for different purposes such as spending, saving, and giving.
The Downsides of Giving pocket money
On the other hand, there are also valid arguments against giving pocket money to children. One of the major concerns is that it can lead to irresponsible spending habits. Since children are not yet fully aware of the value of money, they may be more inclined to spend it on trivial things instead of saving it for something more important. This can result in them being reliant on their parents for financial support in the long run.
Another issue is that pocket money can create a sense of entitlement in children. When they receive money without having to work for it, they may develop the idea that they are entitled to get money from others without doing anything in return. This can be detrimental to their character development and can hinder their ability to be independent in the future.
Tips on Saving Money from pocket money
Despite the potential downsides, there are ways to ensure that pocket money is used wisely and can even be saved for future use. Here are some tips on how to save money from pocket money:
1. Set a budget
Just like adults, children should also learn how to budget their money. Parents can help their children set a budget by discussing their wants and needs, and allocating a certain amount of money for each. This will teach them the importance of prioritizing and differentiating between necessary and unnecessary expenses.
2. Encourage saving
Teaching children how to save money is an essential life skill. Parents can encourage their children to save a portion of their pocket money by providing them with a piggy bank or opening a savings account for them. This will help them learn the value of delayed gratification and the rewards of saving for the future.
3. Give opportunities for earning additional money
Instead of just giving pocket money as a regular allowance, parents can also offer opportunities for their children to earn additional money. This can be through completing extra chores or helping out with small business ventures. Not only will it teach children the value of hard work, but it can also give them a sense of accomplishment and pride.
4. Find alternative sources of income
Apart from traditional pocket money, there are also online opportunities for children to earn money. One example is playing online games that offer rewards or cash prizes. This can be a fun and engaging way for children to earn money from their hobbies or interests, while also developing skills such as problem-solving and decision-making.
The Debate Continues…
In conclusion, whether or not to give pocket money to children is a decision that ultimately depends on the parents and their values. While it can be a useful tool for teaching children about financial responsibility, it can also have negative effects if not managed properly. It is important for parents to establish rules and guidelines when it comes to pocket money, and to continuously communicate with their children about the importance of managing money wisely. By doing so, pocket money can be a valuable resource for children to learn and grow from.
