How Much Money a Child needs for Pocket Money?

The word pocket money stands for cash required for day-to- day spending. Pocket money helps a child to judge what he requires, how much a thing should cost and on top of that ‘Value for Money’.

Pocket Money usually consider as fixed money given monthly ,weekly and daily by parents to their children. Pocket Money let them know how to move in this practical world where nothing comes without money. There is no straight answer on the question that how much amount should be granted to children as pocket money? Age, education, family status, habits and overall a child feelings, thinking and requirements play a significant role in deciding the same.

Pocket money is indeed an important aspect in the upbringing of a child. If the pocket money system is practiced under the limits then a child will not only understand the value of money but will also be a thrifty human being. Hence this system of giving children allowance can have unimaginable benefits for a child.

A very important question that arises in the parent’s mind is the amount of pocket money that should be given to the child; the amount should be sufficient for the child’s day to day expenditure but should not play the role in spoiling the habits of the child. Hence the amount of allowance that should be given to the children should be properly calculated by the parents according to age, need and intelligence to spend the same wisely.

Also a very important point that should be taken into consideration is that the pocket money should be updated time to time so that the child may not develop a complaining attitude towards the system. Parents must also exercise caution while updating the pocket money as the demanding nature of a child would always require for an increase but such situations must be tackled with caution and a firm attitude which will inculcate the disciplinary habits in a child.

The expenditure’s of a child may vary from age to age, so the different ways in which a child spends his pocket money also change. There are few significant points that the parents should keep in mind while calculating the pocket money.

Firstly, the expenditure’s of the child should be categorized. Categories can be allowance for entertainment, conveyance allowance, and additional expenditures.

Secondly, the parents should lay focus on the necessary expenditures and grant them without negotiation, then the expenditures in the leisure activities should be calculated, there should be a limit on the money that a child spends on entertainment and the expenditure in this category has a tendency to increase as the child grows into his teens.

Thirdly, some additional allowance should be given to the child for miscellaneous expenditures, and the fourth and final step that will decide the correct amount for the pocket money is the tallying of the expenditure at the end of each month, this step ensures that the child is spending his allowances judiciously and also gives a correct estimate to the parents for effective updating of the allowances.

If due to some reason caution is not exercised in the last step then the child may give an exaggerated estimate of the expenditure and start wasting money.

So the amount of money that should be given to the children as pocket money requires a very dedicated effort from the parent’s side and if it is done properly the child benefits a lot. In the long run exercises it develops discipline in all aspects of life.

To develop the children as responsible human being always motivate them for future savings even from pocket money too. Tell them with examples that spending is much easier and earning is very tough.If parents inculcate saving habits in the child the child will able to manage his resources efficiently.