4 Factors When Giving Kids Money

There are many things to consider before giving your kids money, especially when giving them pocket money.

These are detailed below: 1. When should you start? - There is no script that sets the age that you should consider giving your children money.
That decision is completely up to you.
However, I fully believe that the earlier you start teaching your children about money and its value the better it is for them, but you get to decide when.
Also if your child asks you then they are probably old enough at that point.

2.

How much to give? - This is another question that has no magic formula answer.
However I would say that the amount given should be appropriate to the age of your child.

I wouldn't give a 7 year old $50.
Also you should take into consideration whether you are giving your child an allowance in addition to pocket money. Obviously if you are giving an allowance and then giving pocket money on top you are not teaching your child how to budget properly.

If you are giving your child an allowance then any pocket money you give should be deducted from future allowance.
Remember the goal is not just to give your kids money for whatever they want but to teach them life lessons.

3.
To work or not to work? that is the question! - First of all let me tell you by work I am not talking about getting a job, although that's not a bad idea.

I am referring to chores and special things your kids can do around the house.

If I asked 100 parents about whether their children should work for the money I would probably get 50 on one side and 50 on the other.
I can't tell you what side to stand on but I can tell you I always like to fall back on what lessons I am teaching my kids. If your kids never have to work for anything and it is always given to them then they never really learn the value of money or what it really takes to earn it.
However, there is no right or wrong answer to this question you have to decide what's best for your child and your house.
4.
Where can they spend it? - Well children can spend this money in a lot of different ways.
One idea is to let how much you give and the expectations for the money be the guide for where they can spend it. If you are giving your kids money for their own pleasure then it should go for that. So don't freak out, when they buy something that seems ridiculous to you.

However if you are giving larger amounts then its OK to expect them to spend it on things they need like clothes or shoes. When it comes to giving kids money, which you will do, be smart and do what's best for your children but remember it's always about the lessons you can teach them.