Pocket money boosts your childs Self worth

How much pocket money should I give my Child: A Western concept which has picked up pace in India and other Asian countries, giving pocket money to ones child varies from family to family and their earning capabilities. The chores given to the child and the earning capabilities of the parent are the deciding factors of giving pocket money to the child. Another aspect is why do you want to give your child pocket money? Giving pocket money has several benefits other than just helping him/her buy toys or chocolates.

• Teaches the value of money and money management at a young age. You can start teaching them the value of money at the earliest, say like from 5 years onwards. This helps the child to plan his/her future finances also.
  
• Nothing comes for free! As a parent you earn to take care of your family, so teach your child that money doesn’t come for free, you have to earn it.
  
• The concept of saving for a rainy day also can be taught. The child should be encouraged to save money and with banks offering savings accounts for children you could open one for him/her and help them save their pocket money.
  
• The child also learns to live within the pocket money s/he earns. If the money is spent quickly s/he will have to wait till the next month. So to spend wisely and appropriately is inculcated.
  
• Teaching the child to keep heads of account for the expenditure is another important benefit. S/he will understand the difference when money is spent on entertainment, games, stationery etc.

And the most important aspect of Pocket money as reward for work done , is that it develops a healthy self worth and attitude in the child – a wonderful attribute which will be a part of their character- lifelong !