Does giving kids pocket money help them learn how to manage money?

Discussion in Misc & Others started by Denis Hard • May 20, 2014.

  1. Denis Hard

    Denis HardWell-Known Member

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    Most parents give their kids pocket money each week. Some kids can spend it all within a day and stay broke the whole week but after learning that they don't get any more money until the next week. they'll start planning how to spend their pocket money so that it can last the whole week.

    Some other kids opt to save all their pocket money so they can buy themselves something they really want but which the parents said they wouldn't buy.

    Either way I believe kids, get to learn a little about managing money if they're given pocket money weekly, rather than daily.
     
  2. Jessi

    Jessi<a href="http://www.quirkycookery.com">QuirkyCooke

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    It should definitely be weekly, biweekly, or monthly....not daily. That's how most jobs would pay them as an adult later.

    As for if it teaches them how to manage money, I think it depends on the lessons that go with it. If a parent simply hands kids money and doesn't talk to them about it, no, they're not going to learn anything. If they require a certain amount go into savings or goals be set, etc, etc, then sure, it can help them learn!
     
  3. Lostvalleyguy

    LostvalleyguyActive Member

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    There are definitely better and worse ways to do this. If you just hand over money to the child, they will learn that you are a place to go for free money. If should be available at regular intervals and the child should have to "earn" it in some way shape or form. This will hopefully teach them the connection between work and pay. Never let a child tap into next weeks allowance as they will no longer have the incentive of being paid to to something.

    Tasks don't need to be onerous. Simply making the bed each day or taking out the trash is enough to equate "I have to do this" with "I will get this". The money should be enough but not too much. The age of the child and what they will likely spend money on will be a factor in deciding how much to give. The need enough (as teenagers) to hang out at the mall on a Saturday with friends, buy lunch, and maybe catch a movie. Younger children want to spend their money on candy or cheap toys and are likely to be shopping with your watchful eye so they don't require as much.
     
  4. mikelouis

    mikelouisActive Member

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    I will say paying them on a weekly basis is much better. You give them the money and tell them that they will not get any other money until the week ends. This will actually give them a sense of saving up and planning how to spend the money in a week. The worst is giving them money on a daily basis. They will just spend it knowing that there will be more tomorrow.
     
  5. Denis Hard

    Denis HardWell-Known Member

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    I very much like the idea of giving the kid pocket money after they've earned it in some way. But if you overdo it, wouldn't the child grow up believing that they're expected to be paid for everything they do be it at home or elsewhere? If this were to happen it would negate any lesson the child would have learned by getting money from you.
     
  6. Strykstar

    StrykstarActive Member

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    I think it does help the to manage money when they are a certain age, there is no point in giving a 5-year-old $10 and saying that's all they get for the week because he will just spend it and immediately ask you for something else.
    When they are 10 or so do give them some allowance but make them at least do some chores for them, even if it's as simple as doing their homework every day of the week.
     
  7. Peninha

    PeninhaWell-Known Member

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    I think it does and there are quite a few strategies that will help them value money. For once, giving them money once a week forces them to manage that money for the whole week. Other strategy is to give them tasks to accomplish and if they do them they receive an extra money.
     
  8. 003

    003Well-Known Member

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    No, I don't think so. I think with this they become just more dependent and they will not think of really budgeting because what they will have in their mind is that they would just be given money (if they are given it regularly). In this way also, they wouldn't be asking for what they like, they would just wait for the money and buy the stuff themselves. One might think that this is a way of training them to be independent, but to give them money or anything without them to have asked for it is spoon-feeding them. At least, when they ask for something that they like, we can say that they worked for it and it is by mere asking. And this appears more acceptable and relevant instead of just giving them money, they wouldn't even be asking for because in the first place they don't know yet its value. Even as young as they are, they should already be trained to work for something what they like, even by asking for it from their parents. Giving them money without them asking for it is training them to spend money they didn't work for in any way possible, so how could they know then its value?
     
  9. sidney

    sidneyWell-Known Member

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    When I was a kid, I was given allowance on a daily basis, and I remember not eating lunch just to be able to save it so that I can buy the things I want. I think every kid will learn how to manage money as soon as they get older, especially if the parents don't spoil them, just like what I have been used to. My parents never bought any of those things that are considered as luxuries, so I had to save up for them just so that I can buy them.
     
  10. Neperon

    NeperonActive Member

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    Not really in their age they just keep spending the money on even the thing which aren't their need at all and can misuse their pocket money if they are totally kid material so yeah learning from all these activities and having an appropriate way of understanding can surely move ahead in a positive way.
     
  11. Verity Darkwaters

    Verity DarkwatersActive Member

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    I don't believe in allowances. I think it can help children save money for something they want. But I don't believe it teaches them much money management. I have seen kids spending their money and then ask for more. Plus, I don't believe in just giving children money unless it is something like a birthday or Christmas.

    I also don't believe in giving money for basic chores. They are part of the family and should be helping out regardless. However, if they want to do extra, they can earn money. I believe that teaches hard work and money management. Now, I'm not saying anything hard like moving a stack of bricks, but like washing a car, mowing the lawn, organizing the shoe bin, or something like that.
     
  12. DrRipley

    DrRipleyExpert

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    I don't think the frequency of payment matters as long as the child is taught the importance of money and how it can be used. I myself received my allowance daily but I always managed to come home with change and by saving up my daily change I eventually was able to put together a decent amount enough to warrant a bank account which I personally asked for. Granted, no one really taught me of this or talked to me about it, but I learned to save my money regardless, so personally, I think it mostly just has to do with the individual and of course some guidance goes a long way.
     
  13. Pat

    PatWell-Known Member

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    Talking about money to kids is very important, it helps them learn so that they will not be taken advantage of by others. We give my grandson money for the chores that he is responsible for on a weekly basis. He has learned to save his money for the things that he wants to spend money on and ask the question "do I really need that" before he spends his money. We were out one Saturday, he told be that he would treat us to a doughnut if I would stop at the shop on the way home.
     
  14. Aquila

    AquilaBanned

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    Giving them a decent amount which isn't really over the top can help them bringing a confidence and that is what works at the end,If we see in a way its a good thing to be done with them because at the end it help us with moving ahead and learning from a right way.