You probably also know someone who can’t handle money – it’s probably a mistake that comes from mishandling pocket money. That’s why it’s so important to give children a sense of how to handle money at an early age. But how much pocket money is advisable and appropriate?
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Do You Have To Pay Pocket Money?
The answer is no. However, if you want your child to be able to manage their own finances later on and know how to manage money, it is highly recommended to provide pocket money. From an educational point of view, it is immensely important to make it clear to the child that it is the only source of money to fulfill personal desires.
What the child ultimately does with it – whether he spends the money directly or saves it for something – is up to him, and at the same time represents an important lesson regarding finances.
Positive Effects Of Pocket Money On Your Child
It Recognizes The Value Of Money And Keeps Track Of Things
Having to pay for things out of his own money gives him a sense of expensive and inexpensive. They learn to assess the true value of things, e.g. what you can buy for €20. Your child must learn to weigh things up and set priorities – would you rather have that delicious ice cream now or a visit to the swimming pool tomorrow?
Make Your Own Decisions And Compare Yourself With Others
Where and when is it cheaper to buy certain things? Would I rather buy that nice shirt now or wait until the sale? Does it make sense to buy me this toy or do I not really need it? All of these possibilities need to be considered and decisions made.
Comparisons to other children and how they handle their pocket money is also important – and sometimes even more effective than the savings monologue with parents.
When Should Pocket Money Be Paid Out?
Until the age of nine, it makes sense to pay out pocket money weekly. For most children at that age, it is simply still too complicated to allocate the money for an entire month.
From the age of 10, however, you can slowly start to get the child used to organizing the money for the long term. So you can switch to monthly payment of pocket money.
Pocket Money Payment – Would You Rather Pay Cash Or Into An Account?
It is possible for children as young as 10, together with their parents, to open a student checking account into which pocket money can be deposited.
Visiting a bank is also an important experience for the child and contributes positively to their development.
In addition, some young people find it “cooler” to have the pocket money transferred to the account.
Nevertheless, one should be aware that “virtual” money is handled more carelessly than cash. You probably know that it is more likely to buy something on the Internet for €50 than to pay for something for €50 in cash in a store.
How Much Pocket Money Is Recommended? The Pocket Money Table Helps
Of course, you should differentiate between the pocket money of a six-year-old child and that of a 12-year-old child. In order to find an appropriate amount – i.e. neither too lavish, nor too tight – the Youth Welfare Office offers a pocket money table with recommendations:
- Under 6 years – 0,50 – 1 € / week.
- 6 – 7 years – 1 – 2 € / week.
- 8 – 9 years – 2 – 3 € / week.
- 10 years – 15 – 17,50 € / month.
- 11 years – 17,50 – 20 € / month.
- 12 years – 20 – 22,50 € / month.
- 13 years – 22,50 – 25 € / month.
- 14 years – 25 – 30 € / month.
- 15 years – 30 – 37,50 € / month.
- 16 years – 37,50 – 45 € / month.
- 17 years – 45 – 60 € / month.
- 18 years – 60 – 75 € / month.
Concluding On The Subject Of Pocket Money Recommendation
- The payment is made regularly, so that your child can plan.
- The pocket money is always paid and is not linked to things like completed homework.
- Stay consistent, even if your child is already broke. Otherwise there is no learning effect.
- Don’t judge what your child buys, it’s his decision “Was that really necessary now?”.
- Do not force him to be thrifty, he has to learn it by himself.
- Do not let your child “keep accounts” of the expenses.
- Do not alienate the purpose of the pocket money (e.g. by making him buy school supplies or clothes).
- Don’t pay too much and fulfill his every wish on the side – why should he save money at all?
- You should talk with your child about what can/should be bought with the pocket money (which does not mean that you should forbid or interfere too much). However, it should also be discussed here what the pocket money is for: Only for personal use, or should it also be used to buy birthday presents for friends?