It is important to teach your child the value of money. This will allow him to better manage his budget when he is older.
At what age explain to him what the money is used for?
From 6 or 7 years old, your child will have learned to count, and he will have understood the notion of exchange.
This is when you can explain the value of money to him. Before that age, he will have a hard time understanding, so it’s useless.
Rather than giving long speeches, you can show your child that money is used to buy goods and services by giving them a few coins so that they can buy candy from a merchant, for example.
Should we give pocket money?
Pocket money represents a fixed sum given to the child without consideration and for free use.
Giving pocket money to your children has educational value.
Indeed, as he can use this money to buy what he wants, he will quickly realize that he cannot buy everything.
He will have to make choices based on the money he has.
Thus, he will learn to distinguish what is too expensive or what is within his reach, and he will have to manage this money as best as possible to obtain what he wants: candy, small gadgets, cards …
How much to give to your child?
There is no rule when it comes to pocket money.
We advise you to take into account both:
• Your family budget
• The age of your child
• Make sure you give it a reasonable amount
How often should I give out pocket money?
Just like the amount, it all depends on you and your child. Choose the frequency that works best for you and fix it with your child.
Many parents give pocket money weekly when their child is young (under 8) and monthly when they are older (from 8-10 years old).
Teach him how to manage his budget
By allowing the child to manage his budget alone and freely, he will take the first step towards financial autonomy.
Of course, this is a relatively small amount, and you will always be there to teach him how to use his money if he is struggling.
But it’s a real step forward in learning the value of money and managing your budget independently.
To make him feel all the more autonomous, agree with him: you give him responsibility for his “pleasure purchases” such as sweets, for example, and you, therefore, stop buying them for him.