Money matters haunt us through our lives. Whether it is spending it or saving it, money is always on people’s minds. Managing the money is a tasking effort for children and adults alike. However, over a period of time, we become accustomed to the managing part as adults. It is then our responsibility to ensure that our children start managing whatever money they may have.

As parents, we love to give our children an allowance, either weekly or monthly. This instills a sense of responsibility in our children and avoids them from constantly asking us for money, not to mention keeps those tantrums at bay. However, they cannot just be thrust into responsibility. They have to learn it and there is no one better to teach them how to manage their money than you as a parent.

The first important thing to do in your quest to teach your children how to manage their pocket money is talk to them. By talking to them you will understand how much money they need and should essentially be spending. Take into account all the things that they would ask you money for and include the things that are the most important, not everything. It’s not possible to buy your child everything. Once you settle on an amount, break the entire amount down with him or her. Talk to them about the difference between needing and wanting.

It is very important that children know the value of saving money. Technically, their pocket money is theirs to spend, but that doesn’t mean they should not learn about how to save. Ensure that you open a saving account for them and teach them about interest rates and the long term benefits that saving have. This will help them in the wrong run. Once they realize the value of having their own account, they will also treat the money with respect. If the child is too young to have his or her own account, get them a piggy bank and tell them to put in money whenever they want.

Giving your children an allowance should be something that they take for granted. To instill good responsible values, make sure that they do something to earn it. Encourage help in household work or assign certain chores to them. Thought allowance should not be a reward for working, it should be appreciated and the child should feel like he or she deserves it. However, don’t let this equate to them doing extra work and asking you for more money. A line should be drawn and a compromise should be reached between you and your child.

Ultimately, to raise an independent child you need to let him or her make mistakes. As a parent, the most you can do is guide them, not force them. By giving them an allowance from an early age, you are teaching them to learn both the consequences of spending too much money and the good points about saving it. Make your child learn how to keep a journal with all the money he gets and spends so he can keep track of his savings and spending. This will make managing their money easier. At the end of it all, when your children are old enough to have their own children, they will remember what you taught them.

Jason Ladock

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