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Is it better for parents to let children manage their pocket money when they are young?

Children nowadays need to use money, but it is an controversial issue whether they should manage their pocket money.

  • Aug 5 2012: I believe in allowing them to manage their own money within pre-agreed to parameters. I give my children 10 coins every week as a salary (not an allowance which is an entitlement, which I am opposed to but a topic of another conversation). They must tithe the first 10%. Then they must pay taxes (30%). Then they must pay room and board (20%). The rest is theirs to spend as they wish (40%). My children are still young so we haven't gone into investing yet. One child has saved $300 USD in this fashion. Another lags far behind, spending most of what she earns. I think it is important that they perform specific duties to EARN their pay (household chores, etc.). If these duties are not performed satisfactorily, their pay is adjusted accordingly as it is if they perform beyond expectations. We haven't delved into fiat currencies and the devaluation of the dollar as they are still young and may not be able to grasp complex concepts but I do plan on teaching them about such things in the future.
    Regards,
    Athan Tsakonas
    Granbury, Texas
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    Aug 5 2012: Parents need to teach their children the value of money; and it is important that children should learn the basic principles of financial management by the freedom they (should) have, of using their pocket money in the way they would use the money they earn.
  • Aug 7 2012: Yes, yes , yes.
    Just keep the amount low, for awhile until they begin to show good judgment with it, along with the freedom to learn how it feels to spend too quickly and on a bad purchase and learning the best way there is, i.e.
    Good judgment comes from experience. Experience comes from bad judgment.

    With small amounts to begin with, they really can't get into trouble, nor destroy their 'wealth' because the real wealth is in learning how to handle it. It also provides a great environment for imparting your great, hard-gained wisdom that will then make sense to them in a 'real-world way' and that is something they really need.

    They will then heed your good judgment, learn by their experience and eventually figure out that you must have used bad judgment to get there too. They will relate and bond with you.
  • Aug 6 2012: I thinks it's better to let children manage their pocket money when they are young.
    Firstly, children will have responsibility. When they grow up, they will use their money in effective ways.
    Secondly, they will learn how to save money and how to use their money. Maybe there are children who use their pocket money to buy toys stuff, but when parents educate them in good ways, they can be a big CEO (or something like that) when they grow up.
    Therefore, it is better to let children manage their pocket money.
  • Aug 6 2012: I think so 100%
    I'm about to enter college, but I'm already used to paying for my own cell phone, car payments, and gas as well as anything not provided under the standard house (any extra food, toys and gadgets, etc).

    Since a young age (I can't remember, somewhere in grade school) I have earned so much money for my chores, and I for years would blow it all on candy in a few days. Until i learned the value of savings. But it didn't click until I wanted something and I was told to save up for it.

    I learned how to really manage my money when my household was going through some financial troubles, and what was done with our family savings. I knew the condition of my family's income, and the bills that where paid.

    I learned from example, what my family did is what I have set up for myself for the future, with money saved in the bank, rotating savings CDs and such, and tracking expediencies and balancing a checkbook. All because I started young.
  • Aug 5 2012: It is better for parents to let children manage their pocket money when they are young and to transmit to children as early as possible every other form of control over their lives.
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    Aug 5 2012: Yes. I think parents need to teach kids the value of money, and what money represents in society. Then you let them manage their own accounts and stuff. Giving money to kids is pretty empowering, and it lets them explore on their own.

    I'm not saying, just straight up give them money, I'm saying parents need to educate them how to use money more effectively (like investment, stocks, savings, etc.) and not blow everything all the time.

    If they don't learn earlier, they will get screwed later in life, when the consequences matter a whole lot more.
    • Aug 5 2012: Thank you. I also think parents' teaching plays a crucial part.