A question often asked is when and how much pocket money, should I be giving my children. Like a lot of things there is no definitive answer to this.
What is clear, is that the sooner a child is familiar with notes and coins the sooner they appreciate the value of money. A pattern of understanding of how much things cost forms. Giving them an opportunity to spend their own money will help in deciding on what and when they spend. This in itself can install a habit of saving for the ‘bigger’ items and with that an understanding that things don’t always come to you easily.
This concept of saving can be encouraged by getting them to think about how much and how long they will need to save to meet their specific target. Having their own money box or even a savings account at a bank or building society will further emphasise their purpose.
As they get older, giving them more independence around spending can be introduced. Picking out their own clothes, toiletries or paying for things such as cinema trips with friends can be encouraged. This, of course, can be introduced gradually. Starting with a modest amount of pocket money or allowance will allow some independence and by slowly increasing perhaps linked to chores around the home, will get them to think more independently around purchases.
As we reach the teenage years, moving from weekly pocket money to a monthly allowance will help them get used to making money last and budget for things. They’ll automatically think about prioritising purchases as well as realising there are some essentials they really cannot go without.
Easing your children into these concepts will help them understand monetary value and that money isn’t an endless resource.
For more advice on financial matters please contact Citrus Financial.
Author: Helen Loder
Co-Director of Sevenoaks Mums