Most parents would love to give their children a ton of pocket money, but they’re not sure how much is enough.
Is Rs. 100 a week too little, or is Rs. 500 a week too much? Should we let them spend it on anything they want? Or should we have some rules in place?
It might tempt some parents to just give their kids whatever they ask for, but that could create some problems down the road. After all, it’s important to teach kids the value of money and how to save for things they want.
Here’s a guide to help you with this!
When To Start Giving Pocket Money
This is a tricky question because there is no correct answer.
Some parents give their kids an allowance as soon as they can count, while others wait until they’re older. It really depends on your parenting style and what you think is best for your child.
A good time is when they spend money out of their hand, like getting snacks or lunch in school.
How Much Pocket Money To Give
Again, this depends on various factors like age, financial situation, etc. As a rule of thumb, give them an amount they can spend without having to ask you for more money every day.
For example, if your child is in primary/middle school, a good amount would be Rs.50-100 per week (or more depending on the price of things in the canteen). This way, they can use it to buy lunch or snacks without having to ask you every day.
If your child is older and has started using the bus or train to get to school, you can give them a bit more money since they’ll need it for fares.
As they get older and start doing more things on their own, you can increase the amount of pocket money accordingly.
What Can All The Pocket Money Cover?
The pocket money you give can cover the following expenses for your child and pre-teens:
- School lunch or snacks
- Public transport fares
- Small treats like ice cream or a toy from the grocery store
- Entertainment expenses like going to the movies or buying video games
Remember, pocket money is not to cover all of your child’s expenses. It’s just a small amount of money that they can use to cover some of their own costs.
For teens and older kids, pocket money can cover:
- Mobile phone recharge
- Pocket money for friends
- Gym membership
- Movie tickets
- Eating out with friends
- School-related expenses like printing, stationery, etc.
As they get older, you can start giving them more responsibility by asking them to cover some of their own expenses with their pocket money.
What If They Want More Money?
If your child asks for more money, don’t just give it to them without thinking about it first.
It’s important to talk with them about why they need the extra money and see if there’s a way they can save up for what they want.
For example, if they want to buy a new toy, you can tell them they need to save up their pocket money for it. This will teach them the value of money and how to save up for things they want.
One option you can give, though, is to encourage them to earn money.
You can give them minor tasks around the house that they can do to earn some extra pocket money. This will teach them the value of hard work and how to earn money.
Recommended reading: 10 Money Lessons to Teach Your Child Before They Turn 10
Things To Keep In Mind When Giving Pocket Money
1. Be Consistent
One important thing to remember is to be consistent with the amount you give.
If you give your child Rs. 100 one week, don’t give them Rs. 200 the following week just because they asked for it.
This will teach them that they can just ask for more money whenever they want and that they don’t need to save up.
2. Set Some Rules
It’s also important to set some rules about how pocket money can be used. For example, you could tell your child that they can use it to buy lunch or snacks at school, but they can’t use it to buy new clothes.
Or you could tell them they can spend it however they want, but they need to save up half of it for a bigger purchase.
3. Let Them Make Mistakes
Let your child make mistakes with their pocket money.
It’s okay if they spend it all in one day and then have to wait a week for more. This will teach them the importance of budgeting and help them avoid making the same mistake in the future.
4. Give them what you can afford
Don’t give your child more pocket money than you can afford just because other parents are giving.
It’s important to be honest with them about your financial situation and only give them what you can comfortably afford.
5. Encourage them to save
Finally, encourage your child to save their pocket money and even give to charity.
This will teach them the importance of saving for future purchases and help them develop good financial habits.
To Conclude: How Much Pocket Money Is Good Enough
Pocket money is a great way to teach your kids about money management. Just be sure to be consistent with the amount you give and set some rules about how it can be used.
