How to Determine Pocket Money for Children – When children enter school age, their needs will certainly increase. Unable to continuously meet the needs of children directly. Therefore, giving pocket money to children will be a must.
However, how to determine pocket money for children? No need to worry, the Whiz financial app has the solution for you. Here are things to consider when determining pocket money for children.
READ ALSO: HOW TO DETERMINE HIGH SCHOOL CHILDREN'S POCKET MONEY
How to Determine Children's Pocket Money
Consider the Child's Age
Every child has different needs. One of the distinguishing factors is age. Of course, parents cannot equate the amount of money for children who are still in elementary school with those who are in high school. Therefore, take into account the child's age in determining pocket money for children. A child will more easily understand the concept of pocket money when he reaches the age of learning about money and calculations such as in grade 2 or grade 3 elementary school.
Take into account the Children's Needs
As before, the need for pocket money for each child is different. This can depend on transportation to school, the number and price of school supplies, and so on. You can give a separate allowance for certain needs, or you can also give an amount of money according to their needs. Thus, while determining how much pocket money for your child, you can also educate them about ways to manage finances.
Discuss with Children
It's a good idea to discuss with the child to determine the child's pocket money. Give them the opportunity to explain what their needs are and the alternatives they can take. In this way, both you and your child can reach a satisfactory decision. In addition, by giving them the opportunity to talk and discuss, their confidence can develop and help them to be more open to their needs and desires.
Teach How to Save
Saving is the most basic and important thing in financial education for children. So that children can grow up to be someone with a healthy financial situation, the sciences of saving must be taught from an early age. For children, the source of money to save can come from pocket money. Therefore, you can also educate your children about saving through pocket money. Give them an idea what the use and purpose of saving is. For example, they want to buy new toys or clothes, or want to go on a trip with their friends, the money that is used for their wishes can be obtained from their pocket money savings.
Avoid Giving Additional Pocket Money
At some point, your child may run out of money in the middle of the month and they ask for extra pocket money. Before being given, it's a good idea to ask why it happened. If their reason is because of their poor money management, avoid giving them extra pocket money. This can be a lesson in responsibility and educate them not to be wasteful. Give them understanding that the arrangement of pocket money must be good, not because you don't want to give extra money, but to educate children to be wiser in managing finances.
Give Snack Money according to the ability of parents
Of course as parents we want to meet all the needs and desires of our children. However, of course, as a parent, you must still manage your family finances properly. Ideally, determining the allowance should also take into account the abilities of parents. So that children and parents can stay in a healthy financial condition.
Well, to help monitor and meet the needs of children's pocket money, Whiz has a feature Automatic Recording you know! So, parents can still monitor their children's needs and their children can be helped in managing their finances by using Whiz!
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