Is it okay or not to give pocket money to children?
Pocket money is a great way to teach your child responsibility and the right attitude towards money and its management, financial planning skills. Since you asked this question, I understand that opinions are divided. Some parents practice this, while other parents do not see it as necessary or good. Parents can meet all the needs of the child, but with the money in their pocket you can offer important lessons. You can teach him to manage his money correctly and it will help him a lot when he earns his own money.
Helps develop financial planning skills
Statistics say that more than half of the adults who received spending money in childhood make savings in adulthood, which suggests that pocket money can help develop long-term financial planning skills. I agree with Ian Bright, a senior economist at ING Group, who said:
If given some control over money, children can be helped to become aware of the value of money and develop a set of basic skills that will prepare them for financial independence as adults.
The right age to give children pocket money
You are probably wondering when is the right time to give your pocket money to your children. At 3 years old, at 6 years old or at another age? I think the age of 5-7 years is suitable for this. You can teach him what money means, how he can earn his personal money and how to raise money to buy the things he wants.
DO NOT use money to reward good behavior
Pocket money is often used to reward the child for good behavior or good deeds. Behavior reward is not the wisest attitude, since good behavior and good deeds should NOT be bought. These are a requirement, something that is expected of the child.
It pays for the work and the result obtained
I believe that children should be repaid for their work and results. This is a biblical principle mentioned by the apostle Paul:
For even when we were with you, we gave you this rule: “The one who is unwilling to work shall not eat.” (2 Thessalonians 3:10 NASB)
Being part of the family, children have responsibilities and must learn responsibility through work, but parents are the ones who decide to repay their children financially for a certain thing done at home, effort in learning, etc.
Teach him to save his money and invest it wisely
Teach the child to put his money in his pocket and invest it wisely. Not many children are taught to raise money, but this is a biblical principle:
The plans of the diligent lead to profit as surely as haste leads to poverty. (Proverbs 21:5 NASB)
Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest. (Proverbs 6:6-8 NASB)
He who gathers crops in summer is a prudent son, but he who sleeps during harvest is a disgraceful son. (Proverbs 10:5 NASB)
According to this principle, planning and patience lead to prosperity.
Teach him to worship the Lord with his personal money and be generous
Teach the child to worship the Lord out of pocket money. And this is a biblical principle and very important for each of us.
Honor the Lord with your wealth,
with the firstfruits of all your crops;
then your barns will be filled to overflowing,
and your vats will brim over with new wine. (Proverbs 3:9-10 NASB)
Teach the child to be generous with the money he earns, as the Bible teaches:
Do not withhold good from those to whom it is due,
when it is in your power to act.
Do not say to your neighbor,
“Come back tomorrow and I’ll give it to you”—
when you already have it with you. (Proverbs 3:27-28 NASB)
In conclusion, pocket money is a way to teach your child responsibility and the right attitude towards money.
Translated by Didina Vicliuc