Raising children is a very difficult task. However, parents have an important role to play in the development of the child as a person and his ability to adapt to the modern world. Economic literacy is one of the main factors in a child’s development. Pocket money will teach him important things that will be useful for a lifetime. It is believed that the optimal age for receiving pocket money is 6-7 years old, however, it is possible to acquaint a child with some concepts from 4-5 years old. For example:
Give the child the opportunity to pay the bill in a cafe or store. When this happens, the child will see that the money is gone and this will stimulate interest in the value of money. If parents want to discuss a topic related to money, they can involve their child in the discussion. This will give an opportunity to hear some financial terms, to fantasize about economic processes.
It is important to understand that pocket money is not the one used for travel, food and other necessary expenses. They should not be related to paying for grades at school or cleaning the house. Pocket money is directed at the child’s independent, uncontrolled use of it from the outside. This is important, because a person needs to gain experience in independent management of finances, planning, and use in order to subsequently effectively do this in life.
At primary school age, you should start giving pocket money, preferably on a regular basis (1-2 times a week). In adolescence, you can do this less often, because it is important for a child to learn long-term budget planning (once a month). Recommendations for issuing pocket money to children include:
- The amount is unchanged (regardless of the circumstances). There is no need to take the money given out for the week or add it during the week, regretting if the child did not meet his expenses.
- The costs should be at the discretion of the child. It is necessary to allow the child to understand his desires and feel all the stages of their realization.
- It is necessary to teach the child to save money. For example, when he wants to buy something that is too expensive, you need to tell how this can be achieved.
So, parents should act as intermediaries between children and the real world. Even something as insignificant at first glance as economic literacy and pocket money determine how a person will relate to his money in life.