By spending frivolously, they will learn the hard lesson that they never achieve their saving goal, and run out of money fast.

Try to stand back a little and allow this to happen. The Frivolous Spender: By handing over control of some pocket money to your child you may discover they repeatedly ‘blow’ the money on frivolous spends.There are a few disadvantages, but with careful management, these can in fact become learning opportunities in themselves. It Teaches the Value of Hard Work: When children can earn pocket money in exchange for jobs they realise the intrinsic value of hard-work.You’re not stuck buying the fiftieth packet of trading cards because they just have to have ultra-rare Number 24. It Limits the Pester-Power: Marketers know all about it, and any parent standing at the checkout of a supermarket does too - kids have pester-power! However, when it’s their money they are spending, they suddenly become more savvy spenders.They also learn to value possessions more, when they have had a hand in paying for them. A Sense of Purpose and Achievement: By gradually saving some of their pocket money towards a goal, children develop a sense of purpose and pride in their achievement.They learn to prioritise wants and needs. Pocket money, especially if earned through chores, enables them to learn what money is actually worth, and its value. To them they literally see cash come out of a hole-in-the-wall. The Value of Money: It’s a tricky concept for kids to grasp, but one they need to understand.Make a Future Saver: Learning young, through pocket money, encourages a lifetime of saving where delayed gratification is appreciated.Pocket money is the building block for adult self-sufficiency. Lower Risk of Adult Debt: According to the ING survey of 12,000 parents across Europe, giving children pocket money reduces the risk of them getting in to debt as adults.Pocket money reinforces this – teaching children the benefits of saving, careful spending, and money management. Financial Planning: Since 2014, financial literacy features on the UK National Curriculum.There are a wide range of benefits to giving pocket money:. Read on to find out more about the benefits of pocket money and how much you should give.

In fact, kids who get pocket money are more likely to develop strong financial planning skills, and are less likely to get in debt as adults. Pocket money has a wealth of benefits for both the child and the family.

What Are the Benefits of Pocket Money? And How Much Should You Give?

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