How to give pocket money to children? Here's what the experts say

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Allowance for children can greatly influence the relationship they will have with money when they are adults. Read the text and find out the best way to give it!

In Brazil, there has been more and more talk about financial education, but it is not as common as it should be.

Some people still believe that money is something for adults and take a long time to discuss this subject with their children, and they even make pocket money a huge taboo.

In fact, this is a mistake, as it is very important for adults to receive their first lessons in financial education while they are still children, at home.

Allowance, in turn, is one of the main tools for this. If you also agree, but still don't know how to give it allowance for your children, read the text and see the experts' advice.

See our index below:

What are the benefits of an allowance for children?

 

We must learn to relate well to money from childhood, and an allowance is a great way to encourage this relationship.

With it, children learn to organize themselves financially and learn financial education while still in childhood.

Soon, they will create the habit of saving money and will find it easier to control their spending.

The benefits of this action can be felt in childhood and also in adulthood, as you are creating an adult who knows the importance of having a good relationship with money. 

How to give pocket money to children according to experts?

An allowance is a tool for teaching children financial literacy. With it, children learn many lessons related to finances, for example:

Through this tool, children are exposed to typical adult situations, such as: wanting something worth more than they have, having to save up 4 allowances to buy an item, running out of money before the month ends, etc.

Therefore, it is precisely in these situations that parental guidance is essential, always emphasizing the importance of maintaining good money management and how to use it correctly.

The ideal age to start giving pocket money is from the age of 5. Parents should decide together the exact time, date and amount, and only then inform their children.

See below for some tips that will help you give allowance for your children correctly.

1. Give your children an allowance according to their age

One of the experts' top tips for parents looking to give allowance for children is that there is a frequency. In other words, parents must establish a day for the allowance.

Furthermore, the child's age must be taken into account when deciding this period, for example, a child under 6 years old does not need to receive pocket money as often as a child aged 13.

Until this age, experts advise that a sum of money be given occasionally so that the child begins to become familiar with money.

It is at this stage that she has her first contact with money in a more independent way, you can put an amount in her purse and give her a mission, for example, to buy a sweet.

It is certainly an opportunity for parents to start teaching their children about financial control, especially since they will only be able to buy something with the amount they have received.

From 6 to 7 years old, parents can then introduce the amount periodically, but in this case, it can be weekly.

Therefore, it should not be called an allowance but rather a weekly allowance, an amount paid per week.

This is because, at this age, children still find it difficult to deal with the monthly cycle, that is, a longer period of time.

They are more noticeable in the weekly cycle, as they are marked by important events, such as breaks in classes, parents at home on the weekend, etc.

From 8 to 11 years old, they can start giving “allowance” for children fortnightly, in this way, it is the fortnight.

From the age of 11, children can already deal with a monthly cycle and waiting, so pocket money can be introduced.

2. Values

The amounts may vary depending on the family's financial situation. Experts also point out that there is no need for children to receive the same amount as their peers.

In fact, the ideal is that he receives an average amount, neither more nor less, but according to the family's economic situation and the child's age.

3. Allowance should not be used as currency

Allowance is a tool to teach children financial education, it alone does not work miracles, parents need to be in control to guide their children.

However, it cannot be used as a method of punishment or reward. Under no circumstances should you use this tool to punish or blackmail your children, as it will certainly bring consequences and cause them to have a mistaken view of money.

For example, by using money to reward your child for household chores or any other behavior, your child may become an adult who feels it is mandatory to be rewarded for everything they do.

He will always be looking to take financial advantage of every situation and will only do things out of interest. 

Using an allowance or weekly allowance to blackmail children into fulfilling their obligations nullifies the educational process, says financial educator Cássia D'Aquino to State.

4. Learn to say no

There may be situations where the child spends all of their allowance before the month ends and asks for more.

In this case, it is important for parents to know how to say no and take the opportunity to teach their child the importance of using money correctly, as they will only have it again next month.

5. Know what your allowance is for

During childhood, allowance should not be used to buy clothes, shoes, school snacks or extra activities, for example, football or swimming.

However, during adolescence, money can be used to buy clothes, shoes, accessories, pay for courses, subscriptions, as long as it is agreed with the teenager.

At this stage, it is important that he has a little more freedom to manage his finances; the intense guidance phase should be given in childhood.

It is during adolescence that parents begin to see the fruits of their teachings and all the guidance they have received, and they realize that their children are now able to manage their money more freely.  

This is the time to take a back seat, but without completely giving up the reins.

6. Open a digital account for your child

With a digital account you will be able to give your child more financial independence, but without losing control.

In addition, it can simplify your financial life and make it safer, because minors do not need to carry cash, everything can be done through the app or paid with prepaid card.

There are currently many digital account options for minors, however, today we recommend a pioneer in the subject and which has been helping thousands of parents to give allowance for children more easily.

We are talking about SuperDigital, Santander's digital account. Among the main benefits it offers we can highlight:

These are just some of the advantages your child will have when purchasing SuperDigital. However, the biggest one is security, practicality and help to organize finances easily.

Enjoy and read too👉How to get a credit card for someone under 18?

Conclusion

When a child learns from an early age to organize their finances, take care of their money and have healthy consumption habits, they will certainly become an adult with organized finances.

Therefore, one of the main ways to introduce financial education into child development is through pocket money.

Don't forget to add our tips on how to give allowance for children into practice and help form a financially aware adult. Did you like the content? Click the button below and see everything about the SuperDigital credit card⤵️⤵️⤵️

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Essay

Nara

Copywriter and aspiring Virtual Assistant. Passionate about the Digital Financial Market and its branches. Certified by Rock Content and HubSpot. ANBIMA student.

By: Nara updated ago 3 years back