THE BENEFITS OF POCKET MONEY

Giving kids pocket money is a personal choice, but there are a number of benefits in terms of teaching children essential life skills. Let's take a look!

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Earning even a small amount of money can benefit kids, even from an early age, as it teaches them the value of money and how best to manage it. Having a small amount of money comes with inbuilt choices in relation to whether they can spend it right away, or learn the value of saving.

Money management

If your child decides to save their pocket money to buy a specific item or experience, the act of saving teaches them to have goals, delay gratification and earn the things they desire. 

Learning about financial consequences

We all make mistakes with money and children are no exception. Part of learning financial maturity happens when we lose money or spend it poorly and feel the pain of it. Allowing your little ones to mess up with small amounts of money like this and experience the consequences is a great life lesson that shapes their understanding around money.

A sense of independence

Having a little bit of their own money is a wonderful way to foster a sense of independence and responsibility in your child. It affords them the opportunity to make choices for themselves sometimes and get to know what they want and like.

WHEN TO BEGIN

Once again, this is up to your judgement. Your child could be at the right stage for pocket money if they can grasp that:

• Money is needed to purchase things Spending everything now still means you must wait until the next payment

• It's good to save some money for later rather than blow it all, simply because they have it

THE "RIGHT" AMOUNT?