Pocket money helps the children to know the value of money as well as how hard to earn a part of the money as a reward for their best performance. But many parents often confuse with the facts whether the pocket money will help the children to learn the basic skills in the right way or it may lead to cross their limits in the future.
You can see many children who try to cultivate the habit of saving money to purchase desired toys or any other play items they needed and also you can find some children who spent them unnecessarily. You can find children often save their money to buy favorite toys and you can find a large number of toy collection for all ages at Starwalkkids.
As responsible parents, we should try to teach the importance of money and also we need to teach the ways to save them, invest them for the future uses.
Advantages of pocket money:
- Pocket money helps the children to learn the money management technique which includes saving, investment, spending and borrowing a part of the money.
- Pocket money helps the children to know the value of money and they realize how much hard work needs to be done to earn a penny.
- It helps to build a habit of saving pattern in which children try to save their money so that they can buy any favorite items for their use.
- Children learn a life basic skill and when they reach their target in saving a certain amount, they feel happy and pride.
- Children habit of saving helps to develop this saving and investment pattern till they become older and hence it helps to create a responsible adult.
- Children realize the importance of saving money and they also learn the techniques of investment.
Disadvantages of pocket money:
- In some cases, children may spend the money on unnecessarily to but certain toys or any other items which are of no use.
- They may not realize the value of the money they possess and become a lavish spender.
- They try to compare each and everything with others and this will make the parent get irritated.
- Often children may think money as a token of love and if parents didn’t give money they imagine things in a wrong way and try to cross their limits.