How to set rules for pocket money?

When it comes to money, it\’s never too early to teach your children how to earn, save, and budget. If you and your family think so, then giving your children regular pocket money is an effective way to improve their financial management skills and encourage your children to learn independence, patience and goal-setting. Why should we give our children pocket money? Children learn their money habits and attitudes from their parents and family financial management. Giving children an allowance is a great opportunity to teach your children about money and help them understand the meaning of saving, spending and donating. Giving children an allowance can help them make better decisions about money. They can either choose to spend it now or save it for a rainy day. However, giving children pocket money is not suitable for all families. So it\’s up to you to decide whether you would rather teach him about financial management in other ways. When do you start giving your children pocket money? This question is largely up to your child to decide. If his best friend starts having pocket money, the kid might want it too. Around the age of 8 is the age when most children start asking for pocket money. By this time, they can count and recognize the different denominations of coins. At the same time, they become interested in certain games and items and want to make their own choices. How often is it appropriate to give pocket money? For younger children, you can start with a weekly allowance and gradually increase the time interval to once every two weeks. When your children are older or already teenagers, you can give them a monthly allowance. This is conducive to cultivating children\’s budgeting skills, because as they grow older, they will have to manage money for a longer period of time. When your children are old enough to start working part-time, you can consider reducing their pocket money to encourage them to find work. Pay pocket money on time As a parent, no matter how much pocket money you give your children, there is one thing you need to ensure – the pocket money must be given on time. If you want your children to learn to budget and manage their money, no matter how small, they need to know when they get their allowance, how much it is, and how they are allowed or expected to spend it. money. TIP When you give your children pocket money, take the opportunity to talk to them about what they plan to do with the money. The frequency of giving your child an allowance is entirely up to you and your family and will depend on your family situation. Reward children for housework. Some parents give their children pocket money without requiring their children to earn it through labor, while other parents want their children to do specific housework to earn pocket money. If you\’re in the latter category, the most important thing to address is distinguishing between those things your child is meant to do and those chores for which your child can get paid for extra work. 1. Paid labor vs. housework The chores you need to pay for vary from household to household. Here are some suggestions: Chores for your child might include setting the table before meals, making their own bed, washing and tidying their own room. Paid work can be work that would have been done by the parent, such as doing laundry, taking care of plants, or mopping floors. 2. What should I do if my children fail to complete their chores? Pocket money is used to cultivateGood professional ethics. If you assign some chores to your child and he fails to complete them, you can choose not to give him pocket money or to give him less. Doing so will continually reinforce the idea that you are fully rewarded for a job well done. 3. Talk to other parents. Talk to other parents about their children’s pocket money, and you will know how others do it. You can find out what chores they pay for their children, how much they pay, how often they give their children pocket money, etc. Getting advice from other parents will also help you develop a plan that works for your family. Saving or spending teaches children that storage is very important for their future spending habits. Here are some different ways to encourage your children to save their pocket money. 1. The principle of 50%, 40% and 10%: 50% of the money is used for storage, 40% is used for consumption, and 10% can be considered for public welfare. 2. Three piggy banks For younger children, you can use three piggy banks for storage, consumption and donation. Children can put their pocket money into each piggy bank. This method allows children to understand the difference between storage and consumption. 3. Make a budget You can make a budget plan with your child and decide together how to divide pocket money. 4. Invest You can also consider investing a small portion of your pocket money. 5. Open a bank account for your child vs. a piggy bank account. By opening a bank account for your child, you can help him understand the concepts of storage and interest from an early age. In the meantime, you can put your bank statements to good use to show your child what the balance is in the account after depositing money, and how much interest is being paid. In this way, children will gradually understand this type of money concept. Piggy Bank Piggy bank is a fun way for a child to start understanding the concept of money and encourage him to save money. This is a great idea for younger kids who are just starting to save money. Compared with depositing money in a bank, the money placed in a piggy bank is visible and tangible, which is more direct. Moreover, when children need to know how much money has been saved, they can always count the money in the piggy bank. This will give them a great sense of accomplishment and will help them identify various coins and banknotes. Pocket money does give children a sense of independence. They can decide how to spend their money. Should they save their money to buy a more expensive item of their choice or splurge immediately on candies and chocolates? The truth is, we inevitably make some bad money decisions, and the cost of making mistakes as children is minimal when spending a small amount of money. It will accumulate lessons for children’s future financial management. On the other hand, it also teaches children the value of money. They no longer let you buy what they want whenever they want, and with pocket money they can take charge of their own budget. At the same time, if they have pocket money, they know that when it runs out, they really won’t have money to buy anything else.