Pocket money is a certain pre-established amount of money given to your child at regular intervals. The amount of money and interval at which it will be given is decided by you, the parent . The value of pocket money resides in the fact that a child feels valued as a family member when some of the available spending money is entrusted to his discretion. Pocket money gives your child the opportunity to learn about managing his income and that money is a limited resource.
- The amount of pocket money depends mostly on how much you can afford to give to your child.
- It depends on what you decide your child has to purchase with it.
- It would be helpful to check how much his friends are getting. When it correlates with what they are receiving it lessens the chances of resentment.
- Usually pocket money increases as your child becomes older.
- A general rule of thumb is $1 per year of his age per week.
- Take the time to carefully explain to your child what the pocket money is meant to be spent on and what not.
- Pay your child his allowance on a set day every week or month.
- It might be helpful to provide different jars for your child to divide his pocket money into. The jars should be for saving, spending and donations. Seeing the level of the savings jar increase can be very motivational.
- Do not pay pocket money in advance. Children need to learn how to delay gratification.
- Do not supplement pocket money when your child does not have enough to buy a desired object.
- You can motivate your child to save money through promising to add to it when they successfully saved a certain amount.
Use your child’s management of his pocket money as a basis to teach him financial responsibility. It will never be a wasted exercise!