5 important rules for giving your child pocket money

The majority of children receive their first pocket money at the age of 7–8, entering a junior school that requires relative independence. But when handing over to a growing child his first "personal" rubles, parents often make a number of mistakes that almost completely negate the benefits that pocket money could carry.

The life hacker figured out exactly how to give out "his own pretty penny" to a child, so that a son or daughter learns to appreciate what they have received and manage it competently.

1. Give money consciously

Give a small amount with a strict clause like "For a bun in the dining room!" just as harmful as giving money without an account. In both cases, the child has almost no chance to independently estimate his own needs. And there is certainly no motivation to rank these needs in terms of priorities. After all, the purpose of the funds is either too rigidly defined (there will not be enough money for any other option, except for the "bun"), or too vague (relatively speaking, enough for everything).

Meanwhile, the key meaning of pocket money is precisely to teach a child to manage finances - to plan spending, choosing primary and secondary, to create savings. Therefore, each tranche - at least for the first time, until the child learns to carry out such calculations on his own - must be accompanied by the words: "Let's calculate how much money you need tomorrow and for what."

During the discussion with your child, you will find out that pocket money includes the following items of expenses:

Necessary ones are, for example, expenses for travel, meals at school, payment for other school needs that cannot be refused.
Additional - spending at the junction of necessity and pleasure. It can be a cake in addition to school soup and a second. Nice fountain pen instead of the cheaper standard one. Buying a new pencil case instead of the old worn out one.
Savings are also extremely important. Every child dreams of one or another expensive toy: a new doll, a skateboard, a soccer ball. Using the example of savings, you can explain to your child how to achieve a dream and how you can accelerate this achievement if you start saving. “If you save 10 rubles every day, then in 50 days you will be able to buy yourself a doll. And if you save 20 rubles each, for example, saving on a cake, then you will buy it in 25 days."

When a child realizes what items of expenditure are included in those 100 rubles that you are ready to give him with you, money will become an applied tool for him, and not obscure candy wrappers.

2. Give out pocket money once a week or month

One of the best ways to teach budgeting is to give pocket money not daily, but weekly, or even (in the case of teenagers) monthly. Naturally, you need to move on to this point after you have figured out the structure of expenses, having learned how to divide expenses into necessary and additional ones.

Having received a certain amount for a week in advance, the student will have to independently prioritize, distributing the money so that it is enough for basic needs: and, say, to buy a travel card, and to pay for school lunches, and for small joys.

Don't be nervous if your child turns out to have spent the budget too early.

This happens to many: children are just learning how to handle money, so they are not immune from mistakes. The main thing is not to add finance beyond what has already been allocated. Nothing bad will happen in a couple of days without money, but it will be a good lesson.

If, nevertheless, the child still has the necessary expenses, for which there is no more money, you can do this: add the amount for an urgent purchase, as it were, “on loan”. Do not forget to warn you that you will deduct this amount from the next tranche.

Always give out pocket money on a clearly stated date, not earlier and not later. If you give money randomly and in different amounts, it can confuse the child.

Rebecca Schicko is a British child development expert and author of Calm and Happy Baby

3. Demonstrate the value of money

At first, children receive pocket money “just like that”. But the older the child becomes, the more important it is to instill in him the idea that funding is not an absolute right, but rather an opportunity that largely depends on the child himself.

For example, your student might start each week with zero balance and earn pocket money by the weekend. "Earning" can be a payment for helping around the house - but only that which goes beyond the standard child's responsibilities. Cleaning in his room is not paid, but if the child puts things in order in the kitchen or bathroom, he will earn an additional 20-30 rubles. Another option for receiving a "salary" is an additional payment for grades higher than the agreed point. Or a book read and retold. Or a verse composed of at least 10 lines. Or helping with younger children.

You can choose any options for additional income that suit you and your son or daughter, setting its size and revising it depending on the diligence of the implementation or other factors. All this will teach the child that money is earned by work and ingenuity, and the level of payment can be negotiated.

4. Lead by example

Do not bring up children, they will still be like you. Educate yourself.

Old British proverb

Personal example is one of the best ways to teach your child how to manage money. Let your son or daughter see how you distribute your salary by item of expenditure: you pay for a communal apartment, allocate a certain amount for food and clothing. You can involve your child in planning a family vacation: "If we want to go to the sea in the summer, we will need to save this amount every month." Also explain to him the mechanism of buying expensive things and equipment - through loans or savings.

5. Encourage charity

The child can donate part of his money wherever he sees fit. On the part of parents, it is only important to pay attention to this possibility, because often children think that they are too small to help someone or to participate in some city-wide or national projects.

Charity helps to foster social responsibility, and this, in turn, increases the level of responsibility in the child as a whole. In the future, this will have a positive effect on the relationship of the matured son or daughter with money, and on his life in general.