Why pocket money is important?
Teaches the value of money: When your child is given a certain amount of cash as pocket money, he or she should be taught on the ways to use it. To make your child know the healthy ways of spending money, teach them! Guide them on how to pick up the most important needs and then spend money. This makes your child understand the value of each penny! If your child is too stubborn to consider these smart ways of spending money, let them do whatever they wish! Just warn them that you will not give a single penny if the pocket money gets over before the last date.
Keeps them comfortable: When your child is growing up, he or she will definitely hang out with the friends. In these hang outs, you can't accompany your child and disturb the fun of your kids! By giving pocket money, you make your child stand independently in front of his/her friends. Your child will not feel uncomfortable to take out money for his own burger or movie tickets! However, you have to be careful while deciding the amount as pocket money. Giving more money than required can spoil your growing child.
You control their demands: Pocket money is important because you control the needs of your kids. For example, if you child wants to have a new phone or iPad that was just shown on the television, you can ask him/her to go and buy. Similarly, books and other stationary items should be bought under the pocket money domain. This prevents your child from becoming greedy and demanding.
Learns budgeting: This is one of the reasons why pocket money is important. You child learns how to manage finances and save money. For example, your young child liked a gadget and wishes to buy it. But, the price of the gadget is high. He/she will save money from their pocket money over time till the required amount is collected. This makes your child learn budgeting and saving money. It also controls their urge to spend money on unwanted things as he/she is specific about the needs and knows how to get it!
These are few points to show that pocket money is important. But, there are few criteria where your child should fit in. Do not give the pocket money at an early age. You have to observe when your child needs it! Keep a track of events and then decide. Give the pocket money depending on the age and allowances of the child. This prevents them from misusing the hard earned money of their parents and become responsible. Be strict as pocket money can spoil your kids. Do not keep a daily track of the expenses but, you should know on a whole, where the money is being spent.