Yes, it is a good idea to start giving your 12-year-old pocket money. Doing so can be an important part of helping them learn important financial lessons. It’s a great way to teach them budgeting, money management and the value of working for money.
Start off by setting a reasonable pocket money amount and explain why it’s important to set a budget. Talk about budgeting, saving and how to use money wisely. For example, you could encourage them to save some money each week and cut back on non-essential items.
Teach your child the importance of not spending more than they have and make sure they know that when the money runs out, it has gone. Depending on their wants and needs, you could allow them to spend the money however they like or miss out on certain rewards if they overspend.
You could also check in regularly to make sure your child is spending wisely. As long as you discuss the importance of budgeting and being responsible with money, a pocket money allowance can be beneficial for your child’s development.
What age is appropriate for pocket money?
Determining an appropriate age for pocket money is a decision to be made by parents and can vary widely depending on family values and the age and development of a child. Generally, it is suggested that children may start earning pocket money around the age of five or six, depending on their level of maturity and ability to handle money responsibly.
It is important that before giving a child pocket money, parents have a discussion with them about money and discuss the value of money, money management, and setting expectations.
Before giving a child pocket money, it is important to decide what tasks the money will be given for and how much the pocket money will be. While the amount of pocket money should reflect the number and difficulty of the tasks, it is also important to consider the age and development of the child.
When deciding on tasks, it is best to stick to activities that are age-appropriate and, if possible, help children to develop their skills (for example, reminding younger children to keep their room clean or helping older children to become more organized).
At a young age, it may be beneficial to start with a weekly allowance, giving an opportunity for children to practice budgeting by choosing what to spend their money on. As children grow, the amount of pocket money can be increased accordingly, and it can also be linked to earning opportunities, such as additional chores or activities.
It is important for parents to supervise and teach their children about the responsible use of money, and this need not stop when the child reaches adulthood. Establishing and reinforcing good habits when a child is young and as they learn, will equip them throughout their lifetime.
Why we should not give pocket money to children?
Giving pocket money to children is a controversial topic, as there is no definitive answer as to whether it’s the correct decision or not. However, there are some compelling arguments against giving pocket money to children that should be considered before making the final decision.
Firstly, pocket money can undermine children’s motivation for achievement and effort. Kids may begin to expect money for mundane tasks and losing sight of the intrinsic value of learning or working hard.
Pocket money can also lead to feelings of entitlement, with children expecting money for nothing or feeling entitled to the latest gadgets or experiences.
Pocket money can also lead to difficulties in developing prudent financial skills – if children are not taught how to make informed decisions, they can easily become confused by the array of choices.
Without guidance, they may become reckless spenders, which can negatively affect them in their adult life. Unmonitored spending could also lead to children making irresponsible decisions, like spending on gambling or risky activities.
Finally, giving pocket money can lead to friction between parents and children – children may feel “owed” money, while the parents may be held to ransom. Lines of communication can become strained if children are not responsible with their pocket money.
Ultimately, the decision of whether or not to give pocket money to children should be based on individual circumstances, though the above arguments should be taken into consideration.
Does pocket money spoil children?
No, pocket money does not necessarily ‘spoil’ children; it can actually have the opposite effect depending on how it is handled. It is an opportunity to teach children important lessons in financial literacy such as budgeting, saving and being frugal.
Research has found that when children are given an allowance, provided with an explanation of why they are receiving it and tasked with managing it, they learn beneficial lessons that will stay with them for the rest of their lives.
Rather than spoiling children, pocket money can endear them to responsibility, remind them of the value of their possessions and the importance of delayed gratification. It can also be seen as a way of recognizing their contribution to the household, whether it is helping out with the shopping, washing the dishes or walking the dog.
When children are provided with an allowance, it is important for parents to provide clear boundaries about where and when the money can be spent. Open dialogue is essential for children to understand the connection between work and money, and how to decide what to save, and what to spend.
Therefore, while they may depend on the allowance to buy the occasional sweet or snack, it can also be a path to a greater understanding and appreciation of finances which are fundamental life lessons.
When should you stop giving your child pocket money?
As it will ultimately depend on each family’s individual circumstances. Keeping in mind the importance of teaching children about money and budgeting, some parents prefer to give pocket money to their children until they reach adulthood.
Others may choose to stop giving pocket money as soon as possible, while some may stop once their child begins to earn their own money.
As a parent, it is important to set reasonable expectations when it comes to pocket money. This will allow your child to learn important financial skills while still being able to save, spend, and budget within restrictions.
Depending on their age and financial responsibilities, you may want to stop giving pocket money when they reach a certain age or when they become financially independent.
It is important to make sure that you are providing your child with enough information to make informed decisions about managing their money. This can help them develop healthy financial habits that can be lifelong assets.
If you discuss these topics with your child and establish clear expectations, you can help prepare them to use their pocket money in a responsible way.
Should parents give their child pocket money or not?
The choice of whether or not to give a child pocket money is a personal decision for parents. Ultimately, it will depend on the family’s individual lifestyle, beliefs and values. There are advantages and disadvantages to both giving a child pocket money, and not giving them money.
The primary advantage to giving a child pocket money is that it can give them a sense of responsibility, helping them to learn how to manage money. It also makes it easier to reward children for completing tasks or achieving good behaviour, giving an incentive to do things like tidy rooms or do well in school.
Pocket money can also help to teach children the value of things, as they can choose with their own money what they spend it on.
However, there are potential drawbacks to giving pocket money. For example, some children may feel entitled or think they have a right to the pocket money, even if they haven’t done the tasks required or behaved.
There is also the risk that children will become overwhelmed or confused with being given money and may not know how to use it wisely. Some parents may also worry that pocket money could lead to children wanting to buy items or spend it on unnecessary things.
Ultimately, it is up to each family to decide if they believe their child should receive pocket money or not. If a family does choose to give pocket money, it is a good idea to set and discuss clear guidelines, such as how the child is to use the money, how and when the money will be given, and expectations for behaviours.
This can help ensure that both the child and the parents are comfortable with the decision.
What are the negatives to giving a child too much freedom?
Giving a child too much freedom can have many potential drawbacks. Too much freedom can give a child the impression that they do not need to follow rules or demonstrate respect for authority figures.
This can lead to behavior problems, such as talking back to teachers at school, being disruptive in the classroom, or being disrespectful to parents and family members. Too much freedom can also lead to risky behavior, such as spending too much time unsupervised or taking part in dangerous activities.
In addition, too much freedom can lead to the child feeling overwhelmed or struggling to define their own boundaries. This can lead to issues such as feeling anxious, insecure, or unable to cope with situations that require self-discipline or restraint.
Finally, too much freedom can make it difficult for the child to adjust to different social situations, as always being given too much freedom can lead them to expect the same level of freedom in other areas of life, subsequently resulting in confusion and frustration when they do not get what they are expecting.
What is the drawback of giving children too much?
Giving children too much without accountability can create entitlement issues and lead to difficulty with self-regulation. When a child has too much of anything, including attention and material items, without a balance of responsibilities and expectations, that child may develop the expectation that everything should be easy and given to them without any effort on their part.
This can lead to a sense of entitled behavior, where the child may expect to receive things with little to no effort.
Additionally, children who are overextended in terms of material items and attention can struggle to develop self-regulation skills, such as managing difficult emotions, managing impulsivity, and controlling their behaviors.
When all their needs (as they perceive them) are always met, they may not learn these important skills. Ultimately, the lack of self-regulation can lead to challenging behaviors and make it difficult for the child to navigate their environment with appropriate behavior.