If you give your child his own money to spend he may gain an excellent education in the use of money and its value. Sometimes parent can help the child to earn money at home. The child can be paid for helping about during the holidays at home or at a friend’s place. Now you may have this doubt.. ‘ if I pay my own child for jobs done at home, will he be likely then to volunteer to help in many other jobs he’s not paid for? Well, don’t make it a habit to pay him every time but only on specific occasions.
As soon as the child gets money to spend, let him spend the money about, as he likes. Offer suggestions now and then if the child accepts them, but never correct him. Assume that the money you have given him is “his”. Don’t include the money given by grandparents or relatives in this. If possible dissuade your relatives to give such monitory gifts; only then will your child learn how to value his money.
Encourage your child to save money. You can induce the child to save the money of one week, and if he saves that without spending tell him that you will slightly raise the amount the next week. This can help him plan and buy something he desires and he also learns that he has given up something now, for something better later.
Please note that the amount you give your child should be increased gradually as he enters high school and his needs increase. Some parents interpret pocket money to be nothing more than money to spend for luxury, regardless of the child’s age. Real pocket money includes regular money for specific necessities as well as for luxuries.
Slowly educate your child to keep itemized account for his expenditure. A few years later, he will know how he used the money and this will help him to handle money in future.
By Ms Hema Sridhar
