by Saurabh Pal

Created on: September 08, 2009   Last Updated: September 14, 2009

It is the duty of parents to teach their children to be responsible adults when they grow up. One of the important areas in which parents can inculcate within their kids is financial responsibility. It is commonly accepted that financial responsibility is also a matter of habit. It is best learnt through practice and perseverance.

The family plays an important part in teaching habits to children. Just like we teach children to participate in family chores so also we should incorporate financial training. Learning to be responsible with money is a very important lesson we learn in life. One of the ways to teach children the value of money is to give them a pocket money initially and once they grow beyond a certain age then they should start earning their pocket money. In fact even in the early ages, parents can introduce a system of earning pocket money so that children learn the value of work.

There are several reasons for making children earn their pocket money. Let us look at them one by one.

Firstly it will teach them the value of money. They will realise that earning money is not easy. It takes a lot of hard work and dedication to earn. They can set tasks like cleaning their room, doing the dishes, doing additional homework, reading, learning to play an instrument or anything else that they want or don't want to do. Now, think how much pocket money you want your child to have and work backwards on how much each task is worth. At the end of a certain completed task they may get a well deserved reward in the form of cash payment.

During Christmas, you may ask your child whether they would like to have gifts in cash or kind. They may want cash as that will give them some extra pocket money or get them nearer to buying something. Most children in their teens hate to ask their parents for every dollar they have to spend. This way they can buy whatever they want with their hard earned money. Parents should not grudge them this money as it is something they have earned for themselves. Besides, think what would happen if you do not give money to your child and he or she adopts unfair means of getting the money?

How they earn money depends on the age of your children as well. Younger kids usually get pocket money from their parents. Elder kids take up part-time jobs at the local Mac or Walmart and earn their money.

Another reason for getting children to earn their pocket money is to teach them to be careful with their money. If you hand out cash to your children then they may not be very careful instead if they earn it then they tend to be more careful about how they spend it or hoard it!

Whatever you do remember every child is unique. There is no pre-set rule to follow. What works for my child may not work for yours. Even siblings may not adopt to this in the same manner. So you may need to modify rules to suit your child. Some may enjoy earning money while another may resent it. Instead they may like rewards in kind like a weekend movie, video game, or trip to the zoo etc. So do ensure to get your child's buy-in as well. Talk to them and agree on how the rewards will work.

One of the success parameters of a parent is to ensure that their children are well settled in life. Remember the objective of their earning pocket money is to help your child to embark on the journey of life and lead a responsible, successful and rewarding life.

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