Pocket money for children to be a very good tool for economic education
22:54
Small amounts given to 6-7-year-old children teach them how to manage their own money, shape economic awareness, consumer responsibility and develop the spirit of entrepreneurship. Pocket money teaches you to save and plan expenses, which will result in less risky behavior related to finances in adulthood.
According to Dr. Katarzyna Sekścińska, a psychologist and economist from the University of Warsaw, it is 6-7 years old that is the best age to start paying out pocket money. At this age, children can count. However, for pocket money to fulfill its educational goals, parents or guardians must define clear rules for payment of money and follow them consistently.
“We need to define how often pocket money will be paid to the child and in what amount. And it is important to make sure that the child gets pocket money on time. Nobody would like to ask their boss for a salary,” the expert noted.
As she added, the period in which we will pay pocket money should not be too short, but also it should not be too long, so as not to exceed the possibilities of planning the child. Dr. Sekścińska emphasized that the amount of pocket money should be adjusted to the age of the child and the economic situation of the family, but it is also important to estimate the amount that we have spent so far on the child's pleasure expenses.
