Pocket money refers to the funds given to children by their parents, grandparents, or legal guardians as a form of ‘reward’ for carrying out certain household tasks. Providing children with pocket money is a valuable method to introduce them to the principles and worth of money, demonstrating that diligence yields rewards. But what is the ideal age to initiate this practice?
The question of when to start giving pocket money depends largely on the child’s age and their ability to comprehend the meaning of money. Experts suggest that children around five or six are usually ready to understand what money represents and how it can be utilised. It’s vital to educate your child about monetary value, the significance of saving, and the importance of wise spending at this stage. Emphasise the principle of ‘input equals output’ or ‘hard work brings rewards’ to reinforce this understanding.
Reasons for Giving Pocket Money to Children
One of the primary reasons to provide your child with a regular allowance is to nurture independence and improve their money management skills. It fosters a sense of responsibility and stimulates them to save for larger goals, cultivating discipline in the process.
Determining the Appropriate Pocket Money Amount
The appropriate amount of pocket money to give a child is subjective and depends on the parent’s judgement. Typically, parents provide between R50 to R80 per week, which equates to a maximum of R320 per month, or R10 to R15 per chore.
For older children, who require money for toiletries, entertainment, and social activities, the weekly allowance could range between R160 and R200, or approximately R800 per month. Given the costs of dining out, cinema tickets, snacks, and other expenses, this amount may seem considerable. However, the crucial lesson here isn’t about the amount, but rather, about teaching your child to spend their pocket money wisely and avoid fostering a sense of entitlement.
It’s important to establish what you anticipate your child to spend their pocket money on. Will it be solely for indulgences or should it include expenses such as birthday gifts and outing costs?
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