Survey On

Pocket
Money
Introduction
Pocket money is money which children are given by their parents, usually every week.
Pocket money is a small amount of money which you earn, and which you can use for buying
things that you want. It can also be defined as ‘money for small personal expenses’. It is also
the money that is regularly given to children by their parents, money that children are given
as an allowance. 

Giving pocket money to children as young as four or five years helps them start learning
about the value of money and money management.

Pocket money can also help children learn about consequences, including the
consequences of losing money or spending it unwisely.
Introduction
There are no hard and fast rules about when to start giving children pocket money.

Children might be ready to try managing some pocket money if they can understand
that:
•they need money to buy things

•it’s important to save money, and not spend it all

•spending all their money today means there’s no more until the next payment.

•Managing pocket money is a great way for your child to develop a sense of responsibility
and independence.
Why is it required for teens?
Pocket money has a wealth of benefits for both the child and the family. In fact, kids who get pocket
money are more likely to develop strong financial planning skills, and are less likely to get in debt as
adults.

For many of us, pocket money is firmly embedded in our memories as the first taste of financial
freedom and responsibility. It is, thus, our first glimpse of what it feels like to be independent
“Individuals” in the world, making decisions of our own accord, yet reflecting to make sure that those
decisions are following the truths of the external world.
 Where is it used?
Where should I spend my pocket money?

1.Spend it on hobbies. ...

2.Spend it on friends and family.

3.Spend it on education and job training.

4.Buy sporting goods.

5.Take a holiday.

6.Spend it on having fun.

7.Pay your bills and reduce debt.

8.Pay more for healthy food.

Should they be doing chores or
working to earn it?
Parenting may be one of the most rewarding exercises, but it is also one of the most difficult. As children grow up to become
more assertive and willful, getting them to complete household chores and school work turns into a daily combat for
parents.
To motivate disinterested kids, parents try to offer them financial rewards, with the amount varying according to the child’s
age and type of task. However, not everyone considers such financial incentives as effective, ethical or rewarding in the long
term.
It is important that the child be asked to carry out basic chores around the house from a young age, increasing the
complexity of work with age. He can begin at 6-7 years, when he can pick his toys or clothes, and as he grows older, he could
clean up his room or cupboard and clear up the table after meals. As a teen, he should take on bigger jobs like dusting,
cleaning the car, watering plants or looking after the pet. If the kid refuses to perform these simple jobs, should you pay him
to perform ...? No. Working around the house helps a child learn about responsibility, taking care of himself, and
shouldering his share of work while living with others. If you pay him for basic tasks, he will consider it a norm and refuse to
do any work without a financial reward. If you are already giving pocket money to your children, do not combine it with
payment for household chores. The allowance should be a fixed amount irrespective of the chores performed by the kid
 Should they be doing chores or
working to earn it?
If, however, you are not giving a monthly allowance and want to offer financial rewards to the child, do not
pay for errands that form a part of his routine tasks or daily duties like cleaning up the room or studying.
Instead, specify and assign particular tasks that are harder or more complex than usual and pay as per the
child’s performance.
Typically, financial rewards don’t work as motivation for children for too long and can serve only as a
temporary measure to urge them to work. The kids either get bored of the system or start expecting bigger
rewards for performing even the basic tasks. In the long term, as adults, they are likely to expect some form
of compensation for fulfilling their duties and responsibilities. If, however, the child is paid to help him
understand the value of physical labor and money, it should be encouraged. This can help a child appreciate
the effort put in by parents to earn a living and run a household.
Is pocket money an entitlement?
Pocket money is given to a child so that he may have some enjoyments of his choice within that amount of
money. Very rightly pocket money gives a child a lesson of budget control. Pocket money has a wealth of
benefits for both the child and the family. In fact, kids who get pocket money are more likely to develop
strong financial planning skills, and are less likely to get in debt as adults. Pocket money should not be an
entitlement as it is something that needs to be earned by achieving something or doing chores, A child who
is left to feel entitled to everything is going to have a difficult time in their adult years. If a child’s sense of
entitlement is not corrected, they’re really going to struggle with the realities of the real world. it’s a
parent’s responsibility to teach them about privilege, to differentiate between needs and wants, to earn
their bit by doing small chores around the house so that they feel worthy and not entitled.
Does pocket money nurture fiscal
sense?
As a kid, receiving pocket money at the beginning of the month holds a lot of value as well as emotion. It’s
like the very first experience of financial independence. It’s about what the amount received lets you do –
spending it at the moment or saving it for the future. While some dutifully save it in a piggy bank, others
spend the amount on stationery, sweets, or treats. All in all, receiving physical coins or notes as a kid has
always been exciting.

Now, if we focus on the present scenario, it would be fair to mention that the nation is moving towards
cashless transactions. And so are our kids. Does it mean no more giving pocket money? Well, not exactly.
You give cash to your children as pocket money. But of late their spendings have been mostly online such as
purchasing games or ordering food. It further accelerated with Covid-19-induced lockdowns that forced
kids to stay at home, stopping them from going out to play or meet with their friends. During this time, tap-
and-go payments have emerged as the most prominent way of money transaction like never before.
Does pocket money nurture fiscal
sense?
Now, it’s true that digitization has made spending and purchasing faster and easier. But, it has also
made it tough for parents to instill lessons to their kids around the real value of money in today’s
digital era. In fact, in the age of instant gratification, when parents meet their children’s requests
almost instantly, values such as the need to save up to buy their dream purchase are gradually fading
away. So, in such as case, imparting knowledge about budgeting, savings, and spending becomes vital.
And as parents, you must instill these lessons in your kids from a young age. Teaching your kids about
how to make better spending decisions will help them in the future when it comes to making big
investments as an adult. Responsible spending habits along with the discipline of saving as well as
budgeting play a vital role in lifelong money management.
Thank you!