Should you give your children pocket money? The debate in figures and tips
Pocket money is a common family practice, but one that raises many questions. At what age should we start? How much to give? How can this practice be supervised to make it a learning tool and not a source of conflict? In this article, I explore the benefits and risks of giving your children pocket money, based on studies and concrete advice on how to better manage this practice on a daily basis.
Pocket money in figures: what does it mean in practice?
According to studies, 50% of children over the age of 6 receive pocket money on a regular basis, but this practice becomes more common from the time they start secondary school, around age 11. Amounts vary according to the child's age and responsibilities:
- Between ages 10 and 12: 18 euros per month on average
- Between 13 and 14 years: 26 euros per month
- Between 15 and 16 years: 37 euros per month
- Between 17 and 18 years: 44 euros per month
These figures show that pocket money increases with a child's age and independence. However, certain disparities persist, particularly between girls and boys. Indeed, 48% of boys aged between 10 and 12 receive pocket money, compared with only 40% of girls. This gap narrows as children get older, but boys generally receive more money than girls of the same age.
Why give your children pocket money?
Giving pocket money can be an excellent learning tool for children. Here are just a few reasons why.
1. Learn to manage a budget
Giving pocket money helps children learn the basics of budgeting. With a regular amount of money at their disposal, they discover the value of money and learn to prioritize their spending. This helps them develop financial responsibility from an early age. For example, he can choose to spend immediately or save for a larger purchase.
2. Developing autonomy
Receiving pocket money gives children the opportunity to make financial decisions on their own, thus fostering their independence. They learn to make choices and to manage the consequences of their actions, whether saving or spending. This financial autonomy is the first step towards the independence they will need to acquire as adults.
3. Encourage communication
Pocket money can be an excellent opportunity for parents toopen up a dialogue on money management and spending habits. By discussing how children use their money, parents can offer advice while helping them reflect on their financial choices. This allows topics such as saving, needs vs. wants, and even more advanced concepts like budgeting to be addressed.
The risks of pocket money
Although pocket money is a powerful educational tool, it also presents potential risks if not properly supervised.
1. Uncontrolled use
Without guidance, some children may spend their money impulsively, on things like video games, clothes or unnecessary gadgets. It's important to let children make their own decisions, but with appropriate guidance to avoid impulsive spending. For example, it can be useful to introduce the concepts of saving and planning from an early age.
2. Creating inequalities between children
In some cases, pocket money can create inequalities between children in the same class or group of friends. Some children receive more money than others, which can lead to uncomfortable comparisons. It's important for parents to explain to their children that every family has a different approach to pocket money, and that these differences in no way reflect an individual's worth.
3. Linking money to behaviors or chores
It can be tempting to link pocket money to chores or rewards for good grades. While this can sometimes work, it's better to think of pocket money as a tool for independent learning, rather than as a motivational lever. By separating pocket money from daily chores, children learn to manage their budget without expecting immediate compensation for every effort.
Practical tips for managing pocket money
Here are some practical tips on how to give your children pocket money in an effective and educational way.
1. Define clear rules
It's essential to define clear rules with your child regarding pocket money. Decide together how much money will be given, how often (weekly or monthly), and what is expected of them. This will help your child understand that he or she needs to manage this money seriously and thoughtfully.
2. Encourage savings
Pocket money is an excellent opportunity to learn how to save. Encourage your child to set aside a portion of his money each month for a personal project or a larger purchase. This helps them understand the value of saving and set financial goals.
3. Promote autonomy without control
One of the aims of pocket money is to give children a sense of responsibility. Accompany him in his choices, but also let him learn from his mistakes. If he's not happy with an impulse purchase, he'll naturally understand the importance of thinking things through before spending. It's essential not to control everything, so that children can learn from their experiences.
Conclusion: Pocket money as a lifelong learning tool
Giving pocket money to your children can be an excellent way of teaching them to manage a budget, make decisions and become more independent. However, for this practice to be truly educational, it must be well supervised and accompanied. By setting clear rules, encouraging savings and letting children make their own choices, you give them the keys to acquiring essential financial skills for the future.
To find out more about this topic and other tips on raising children financially, listen to the full episode of the Generation Parents podcast.
The Soft Kids team 🌈
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