We all know that giving your child pocket money is a great way to teach them about the concept and value of money and that hard work earns rewards, but when is the right time to start giving them pocket money?
One of the first things to consider is your child’s age. Professionals believe that the right age to entertain the idea of pocket money is normally around five or six when your child can really start to grasp the concept of money- what it stands for and how to use it. Ensure that you start educating your child about money as well as the importance of saving and spending money wisely. Your child needs to understand the concept of “what you put in is what you get out,” or “Hard work pays off”.
Why parents give their children pocket money
The most important reason to start giving your child a monthly or weekly allowance, is to teach them independence and how to use money properly. It instills a sense of responsibility and encourages them to save for bigger things by learning how to be more disciplined.
How much pocket money should I give?
The amount of pocket money a child should receive is debatable and is all up to the parent but usually parents pay between R50 – R80 per week. That’s at most R320 per month. Or R10 – R15 per chore
For children who are older and have more needs: Toiletries, entertainment and going out money, parents can expect to pay between R160 and R200 per week. That’s R800 per month, taking into account the cost of restaurant food, cost of movies and popcorn etc, everything adds up. The most important thing you can give your child is the knowledge and tools to spend that pocket money wisely (Because it is a lot of money and you don’t want to raise an entitled child)
It’s also important to discuss what you expect your child to do with his pocket money. Will it only be for treats or should it, for example, include buying birthday presents and paying for outings?
For more hints and tips, be sure to read our blog!