It is very essential for a
parent to give his child pocket money. If given rightly, it instills the concept of
sensible spending. The parents should estimate approximately how much a child would
require. The child can be taught, that the money is for spending things for pleasure as
well as for necessities. Beware of giving too much pocket money to your child. Your child
may unnecessarily spend, he may get confused of making sensible judgements about spending.
Sometimes your child may
want to go to an expensive restaurant or holiday. Learn to say "No". Your child
has to be taught the difference between what an be afforded and what is worthwhile. He has
to learn to live within his means. Don't be overstrict, at times indulge in taking him out
to a fancy restaurant. This flexibility should entirely be your decision.
Involve your child
It would be a good idea to
show your child how you do budgeting. The regular household expenses, insurance expenses,
car maintenance, school fees, etc., money put in bank as savings. Let your child know
you've got maximum mileage out of your individual budgets. Involve your child in family
budgets. Let him run the house give him a certain amount in the beginning of the month and
keep record of all the expenses. Open a bank account for your child and allow him to run
his bank operations like putting in a bit of money every month.
Earning is the most
important step of learning the value of money. Allow your child to take up a summer job.
He will realise the effort and time to earn money is much more than to spend it in a
Don't Judge in term of money
As parents one has to
instill on a child that money can make the world go round - so don't judge in terms of
money. How to live like a honest good human being cannot be determined in monetary form.