Pocket money: boon or bane for children?


Are you giving pocket money to your child? Did you ever wonder in what things your child is using his pocket money? Is he utilising it or just wasting? Is pocket money leading him to some unhealthy habits? Read this article and decide whether you should continue this practice of giving pocket money to your child or not.

Parents are always the well wishers of their children. They want their children to have the best and achieve the best. And for this they try to give every best possible faciliy to them. Not only facilities infact they try to fulfil each and every desire of their children whether its in their budget or not. They feel happy when their children puts newer desires in front of them and feel even happier when they fulfil them. Sometimes in this blind race of fulfilling desires parents forget that this could be harmful in some or other sense for them and their children in future. One such desire which could lead your child to unhealthy habits is giving pocket money to them. However I am not saying that every time it is unworthy to give pocket money and hence I am providing you some merits and demerits of giving pocket money to children.

Merits of giving pocket money to children

Pocket money proves to be a great boon for children. Those who know the value of money and how their parents have earned it will try to utilize money in a better manner. I am listing here some merits of the same.

  1. Learns to make budget: When a fixed amount of pocket money is given to a child and he is told to manage all his expenses within that given sum of money the child learns how to make a budget and uses his money in more important tasks. This habit of making a budget proves to be better thing in his future life.

  2. Learns to discard less important: When a child learns to make his budget; he then decides what is useful and what not. In this way he divides all his expenses to be done in three parts- useful, less useful and useless. He straight away discards the useless expenses and deals with useful first and then less useful.

  3. Learns to save: He learns to save money so that in future any expense arises that is to be done on the spot and is very urgent in terms of requirement he could serve the purpose quite well without looking for anyone's help.

  4. Learns the value of money: When a fixed amount of money is given to a child and he is told to deal with all his expenses for that month into that amount only he learns the value of money and how to use it judiciously. He then never tries to force his parents for any useless desire to be fulfilled by them.

So these are a few basic habits that are inculcated in a child when he is given a fixed amount of pocket money for a particular period of days, say a month.
Let's now have a look at the demerits of giving pocket money to children.

Demerits of giving pocket money

Its not every time that the money given to a child is utilised. Sometimes it becomes a headache for the parents to give them pocket money. How and in what cases such situation arises let's have a look upon that.

  1. Feeling of superiority arises: In many cases the child start to feel himself more superior upon other class fellows and friends. He starts dealing with them like his subordinates. This feeling later on becomes quite harmful when he starts dealing with his parents in a similar way he dealt with his friends.

  2. Gets addicted to unhealthy habits: This happens mostly with the teenagers. In order to create an impression among friends they start wasting their money without thinking what is right and what not. Sometimes this leads them to unhealthy habits of drinking, smoking etc. If these habits become an addiction we all know what will be the consequences.

  3. Cuts off with his parents: Thinking that he is capable to manage all his expenses himself a child gets cut off with his parents. He then approaches his parents only when he needs something which is not within his capabilities and could not be achieved by his pocket money.

  4. Loses moral values and etiquettes: This does not happen every time but in most of the cases a child who develops unhealthy habits and feeling of superiority loses the moral values and etiquettes taught to him and starts taking parents and other elders for granted and the world casually.

Conclusion:-

We have now gone through the major merits and demerits of giving pocket money to children. The conclusion is although upto you but still I would like to say that if you are giving pocket money to your child keep the following points in mind.

  1. Fix a definite amount and don't raise it upto a particular age group.

  2. Keep a check on the expenses of your child.

  3. Ask for the list of expenses he did in previous month before handing the sum for next month.

  4. Appreciate him for judicious usage.

  5. Check his company and group of friends he is having.

  6. Tell him time to time the value of money and with how much efforts you are earning it. Do not over use this tool.

  7. Tell him to manage all his minor expenses like stationary purchases etc himself.


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Comments

Author: Kailash Kumar19 Apr 2016 Member Level: Platinum   Points : 3

Now certain banks allow minors to open and operate their own bank accounts e.g. ICICI bank's 'Smart Star Account' can be opened and operated by the minors of above 10 years of age, independently. Such accounts come with features like free personalized debit card with spend and withdrawal limit of Rs. 5000, personalized cheque book (cheques can be issued by the child), free internet banking access, free mobile banking access, free email statement and pre-paid mobile recharge facility etc. In my opinion, instead of giving pocket money to the children, the parents may consider opening their own bank accounts so as to enable them to learn about savings and financial prudence. However the children should be taught to avoid wasteful and harmful expenditure like expenses on junk foods, smoking, drinking and buying gifts for girl friends/boy friends etc.

Author: Ankita Sinha22 Apr 2016 Member Level: Gold   Points : 6

I totally agree with all the advantages mentioned above. But apart from that there are few more advantages of giving pocket money to children.

It gives them platform to feel independent. Prioritize their need and know how to manage their own finances. Secondly dealing with finance and money is what part of every grown up, So introducing this skills at very early age is a productive act.

Pocket money given may not always pretty enough to meet all luxuries. This limited resource of money make them realize the fact that earning sufficient money is necessary for desired lifestyle. It makes them work hard and be focused in their career and eventually achieve the desired result. For example any child desire to buy i-phone can neither buy from mere pocket money nor convince parents to buy it as its not essential like his education, food and clothes. During this process the child not only learns the value of money but also envisage to work hard and earn well.

Along with this he never argues for unnecessary demands and have respect and love for his parents. He develops faith in his parents decision and obeys it firmly. He know the fact that his parents given them enough liberty and freedom to grow well and if for instance they say no for particular thing the child know its definitely good for them.

According to me the disadvantages mentioned here are not appropriate and totally unjustified.

Pocket money given to any child can never be cause of superiority. Superiority develops when there is feeling of I am better than other, what I am availing is not availed by anyone and its my peculiar extraordinary quality. Contrary to this pocket money given is part of upbringing. The child see it as perk and extra advantage given to him. He feels thankful and content. It help to mold the child as better person and definitely a better friend. Buying friendship band or gift for friend from his pocket money is a sweet gesture. Child learns to value relationship along with his own career and life’s ambition. He learns to balance the social behavior, his own need and act as better and loving person.

Secondly getting addicted to unhealthy habit is something more exaggerated. How can a child get addicted to bad habits with the little amount of pocket money and when day to day totally supervised by parents. They might do mistake of spending more on toys and sweets and run short of money for necessary stuff. But that’s how things work we do mistake and we learn.

Finally third and fourth point focusing of loss of moral values and etiquettes and getting cut off with parents is totally irrelevant. The author totally ignore the emotional and love bond between parents and child. Even when child grows up, get married and able to deal his own finance expenses never tries to cut off with his parents then how come mere pocket money gives them audacity to think and act in such inappropriate manner. The moral and values we all have is result of how we have been brought up. Giving pocket money and supervising all the way is an way of supporting your child and making him prepare well for all emotional, social and materialist aspects that he will eventually face as grown up. Pocket money may not bring all expected good results in some cases but disadvantages can never be too strong to question love and bond between child and parents.

Author: Jagdish Patro02 Jun 2016 Member Level: Diamond   Points : 5

Pocket money is essential for the children these days to meet their immediate requirements as they have to spend more time in their school or college than the spending hours at home. The geographic location of their educational institutions also matters and the pocket money includes their transport and stationery expenditure also. As the author has rightly pointed out it is the responsibility of the parents to check out their movements and company of friends so that they should not fall prey to vices. More or less, the present generation of kids are very smart and knowledgeable and well versed with the handling of situations but it is the responsibility of the parents to have an effective supervision. The e-world has brought down the distance among all and I find kids ordering their needs via e-shoppe where the misuse of pocket money is likely to occur. We should cultivate them the habit of savings, financial discipline and the reasonableness of incurring expenditure while allotting some amount towards their pocket money.

Author: Sheo Shankar Jha02 Aug 2016 Member Level: Gold   Points : 4

Pocket - money is indespensible in these days for the children since we cannot predict the situation which may appear all of sudden as a result of break - down of school - bus forcing the children to take up an alternative arrangement to reach home safely. There may be sudden demand of money by the school - authorities for arrangement of excursion, fare - well of retired teachers, purchase of a new Exercise book in the wake of depletion of the old one. Armouring them with such needy resources, would provide them sufficient confidence to tackle the crucial situations.
As far as judicious use of the same is concerned, they would be provided sufficient inputs by the parents where there is scope of spending the same. Even the children are cautious enough in this respect if the environment of the family is congenial. In fact, personality - development of the children is influenced by the behaviour and temperament of parents.
We should definitely offer the the oppurtunity to children to apply their own minds on the management of finance so that they would grow realising the importance of money on their attainment to maturity.

Author: shaik mohammed sohail25 Jun 2017 Member Level: Silver   Points : 4

Pocket money is very important now a days because when I was a child I used to get 2 rupees as a pocket money and then 3 Rupees and then 5 Rupees. Now I am getting 500 Rupees as my pocket money. As we get older our needs increases and as well as our desires. When i was child I don't know how to spend money and how to save it for further purposes and now I have an idea about that. Today's children need pocket money because of sophisticated development. It is necessary that parents should provide pocket money which fulfills the children desires and wishes and which makes them to analyze economic activities, but at the same time be careful and check whether they are using their pocket money for good or bad. Parents should guide them properly.

"Consuming excess in quantity of something or doing something more times than our capacity can make you to fall ill and to lose yourself hope".

Author: umesh04 Jul 2017 Member Level: Gold   Points : 3

Pocket money has its merits as well as demerits and the article has brought it nicely.

I want to add one important thing in this respect. What happens is that in the school all children are equal but the children from rich families either bring sumptuous tiffin or bring sufficient money and purchase things for themselves in front of other children who are from lower or poor class. Now these poor children see this and might feel bad or may suffer from inferiority complex which is not good for their growth and overall development. This is a consideration due to which we have to provide some pocket money, whatever small amount, to these deprived children.



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