Kids love to play big! They keep seeing their responsible adults and wish to become like them at an early stage. There have been various movies that have portrayed this insight of the child. A child always feels that the life of a grown up is worry-free. They see their parents donning different hats every hour and, they wish to do the same. For them, the life of a grown up is interesting and better. They get shouted at the smallest of instance, have to ask for everything and have limited access to everything around. You could start shoving some responsibility on their shoulders by giving them pocket money every month. It is the beginning of a responsible life. You are allowing your child to learn the value of money.
1. Earn the Money
Your child should receive his/her pocket money as a monthly earning against the work done by them. You could ask them to get the house cleaned, shop at the nearby grocery store, mow the lawn for the day etc. Give them some odd jobs and give the pocket money against that. This would give them a sense of how money does not come for free; you have to work to get it. It will also get him to look at the money earned responsibly. You are also in turn preparing him for the odds of the world outside and, how he/she needs to understand the need of a job.
2. The Saving Attitude
When you tell your child that it is their pocket money that they are supposed to use to get their stuff, they start understanding the real value of money. They might want to buy a new gadget or some kind of accessory. When they come to you to ask for money, you might just respond by saying “get it from your pocket money”. This would make them understand that the money is supposed to be for every single need of their’s. They would end up saving a bit here and there to fulfil their needs. This would curb the unnecessary expenses. You have to be a little harsh on them to make them understand the money’s worth.
3. The Responsible Behaviour
Before the pocket money, your child used to spend money unnecessarily. The money actually belonged to you and they could buy whatever they liked. The budget was open hence you had no control on their spending habits. A pocket money would make them a wiser person. Now the monthly budget is restricted. If they really need more money, they have to work to get it. They just can’t come and ask for money whenever they wish to. They would now realize enough to curb their spending on unnecessary things. Remember you won’t be able to teach them the importance of money and curbing unnecessary expenses by yourself. They don’t learn it when money is disposed in front of them. When they have to manage within some funds is when they actually start behaving in a mature fashion.
4. Fix the Time Period
You could give them work during the weekends and, set a particular amount against it. You need to be firm when deciding the amount and the period till which they have to manage with that amount. For example, you could give X amount as payment for the work and tell them they would have to manage within that money for a week. Initially they used to spend more than that on a single day. Now with a bound time period and no access to extra money, they would have to grow wiser. It allows them to stay grounded in terms of expenses. They would now have an account for every penny they spent. This is a good way to make them realize and grow.
5. Decide the Amount
Decide a payment at the beginning for every work. You could take suggestions from other parents as to how much they pay per month. Remember while deciding the pocket money, you need to take into account their age and the basic needs. Don’t pamper them by giving in extra money. Yes, where and when they deserve some extra cash, don’t hesitate from giving them. As parents, we sometimes fail to understand the need for our child to grow up. You could even give your child some incentive or bonus every six months or so as a mark of appreciation. This would make him want to work more.
6. Separates Wants from Needs
With a fixed amount in hand, your child would understand the difference between what he truly needs and what he desires to have. There may be many wish-lists and, if he wishes to fulfil them he needs to earn the money or save the money. This way he would understand where he needs to spend and where he can avoid spending. A clear cut understanding of desires, wishes and actual needs would be built at the very beginning. This foundation would help him when they grow up and take up a job. They won’t have any problems while handling the finances. Managing the income and expenditure would, by then, come naturally to them.
7. True Value
Everyone takes for-granted what comes to them easily. If you get money easily, you would never understand the importance or value of money. You would just keep spending and, you know you will get money whenever you ask for it. As parents, you should understand this psychology and, make it hard for your kids to get money so easily and without any effort. This hard way of getting money teaches them the actual worth of every penny. They now know that every penny is expensive and would use them wisely. You would at times want to pamper them but, control on that feeling. You are actually making a wiser person out of your child and it is very important.
Giving pocket money to your kids would be a wise decision. Do make sure that you don’t stretch out more money than what they have actually earned.