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How much pocket money to give your children

Updated on October 11, 2013

Sky rocketing pocket money

' Rule No1:Never lose money.

Rule No 2:Never forget rule No1.'

I still remember with a smile when my mother gave me hundred rupees(about two dollars) to spend when I went out with my friends. I did not know what to buy and I came home without buying a thing and returned the money to my mother. It was some thirty years ago and the youngsters of today would smile when they read this.‘Two dollars is a pittance and not knowing how to spend it is the funniest thing we have heard’, modern youngsters would laugh at my naive attitude.

How times have changed! Money seems to flow in the hands of youth and they also spend money with ease and without any reservation. Is it good to give pocket money to your children? Of course you should give your child some money to spend, otherwise he is going to feel very uncomfortable in the midst of his friends. He will also feel inferior if he has to look up on them to spend money for him.

But what makes parents highly tensed is about the amount that should be given to their child. Today children have become very demanding and they seem to want all the things their friends possess. A very wrong attitude which you should never encourage in your child! You should also set a budget and tell your child to spend within that limit.

With you and your spouse spending most of your time away from home because of your tight work schedule, you are unable to spend quality time with your child. It makes you guilty and to assuage your guilt you give your child money as a compensation for your absence. But the mistake you do is that you do not know the limit of money that should be given.

When you pamper your child with too much money, he grows up without knowing the value of money. It is important that you instill a sense of consciousness in your child that money is valuable and very hard to get. If you keep meeting all his demands he grows up thinking that money is an easy thing to earn. It would be better if you set a budget and advice him that he should spend within that limit. Do not be too preachy as it gets the reverse result.

For your school going child, you should not give him too much money as he will never know how to spend it wisely. An average of ten dollars for a school going child is enough and even with that money you can teach him the art of saving. Get him a piggy bank and ask him to deposit his spare money into it. You too can contribute to encourage him and ask him to set a period of time before he can open it. He can buy the toys he wants with his own money and it will definitely instill a habit of saving money in him.

You can gradually increase the money as he grows up, but you should always remember that there is a limit. When you feel your child demanding too much money, it is time for you to become cautious. There is nothing wrong in mildly monitoring your child’s spending habits and if you feel that your child is not being judicious in his spending, you can definitely have a friendly talk.

'We teach children to save their money. As an attempt to counteract thoughtless and selfish expenditure, that has value.But it is not positive;it does not lead the child into the safe and useful avenues of self expression or self expenditure. To teach a child to invest and use is better than to teach him to save' - Henry Ford

Money is very essential to survive in this world. As a good parent it is your duty to see that your child grows up as a person who knows that money without hard work is impossible. If you give unrestricted money to your child and let him spend without any hesitation he will learn the value of money the hard way.

© 2013 mathira


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    • mathira profile image

      mathira 4 years ago from chennai

      Thank you sunil for your visit.

    • sunilkunnoth2012 profile image

      Sunil Kumar Kunnoth 4 years ago from Calicut (Kozhikode, South India)

      Really a good topic and every parents should read it. The present children are mostly spoiled by the excessive money their parents give them. We need a control to these things. Your article is well appreciated and decent topic the whole world requires.