“Pocket money” has always been a difficult problem for parents, especially the decision of giving children access to money should be thoughtful. It is necessary to negotiate conditions with the children and to ensure that the children will not spend money indiscriminately. If pocket money is used as a reward, parents may be afraid that the child will only act because of money. Should children be rewarded with pocket money for doing housework, completing homework, and having high test scores? Let FinPod explain to you why pocket money rewards are so important!
Parents’ Concern: Money Exposure Make Kids Utilitarian?
Parents tend to think that children should complete housework unconditionally as a responsibility, such as helping with chores, completing homework, and studying. The reason is that children don’t have to work, and it is only natural that children ought to follow instructions from their parents. So, we may think if parents add pocket money rewards to the original responsibilities, wouldn’t it make children only do it because of money?
This is a common concept that most parents would have, worrying that once a precedent is set, the child will put a blind eye to things without rewards. It is understandable that parents want their children to be sensible and self-disciplined, and hope that they can be “automatically self-conscious” about responsibilities in life. But is it really best for kids? Rewarding pocket money is indeed a good opportunity to educate children on financial literacy and to establish a correct concept of financial management.
Smart money management: Set up a pocket money reward rule with your children
Parents should first let their children know the ways to earn pocket money. And both parties follow the rules together. From the perspective of a child who has never been exposed to money, nor does he or she know what money is used for. The first impression of money will be via the first pocket money you give your child. Grab the opportunity to let children know the importance of financial management through pocket money. Learn how to manage money, and at the same time understand the concept of wealth.
3 benefits of giving children pocket money
#1 Establish clear goals
A correct concept of money is important. Parents should take every pocket money reward for their children seriously. Pocket money should not be an unconditional distribution – turns housework and schoolwork in daily life into goals that children can earn pocket money. Also, parents can try to set difficult or long-term goals, that would allow children to gradually achieve important tasks with motivation.
#2 No free lunch
Parents should bear in mind that children who have not set foot in society will not know the hard work of making money. Children could not have ideas when making expensive wishing or unreasonable desires. Giving your child pocket money is an excellent way to resolve such scenarios. No more free lunch – Whenever children think about a new toy, they will start to examine the money they have. Instead of directly demanding gifts from parents, children can think about achieving better performance at home or school to earn their way to their goals.
#3 Understand financial management earlier
Money is an unavoidable topic that has to be faced sooner or later. Instead of constantly dodging it, it is better to take the initiative. Start small and start early with your children through pocket money. Every time your child spends or earns pocket money, it is an opportunity for them to think and digest financial management. How should they use their hard-earned pocket money? This becomes a chance for children’s self-reflection. The financial literacy built through this journey will be beneficial to your children for their lifetime.
FinPod makes financial education simple and fun!
Not knowing how to start the money conversation with your children? FinPod is here to help! Visualize the money concept and track every transaction in a simple, clear and fun form. Experience FinPod today – The next-generation super app to organize family tasks, rewards, pocket money and entertainment for your children.
Complete Tasks and Earn
With FinPod, your children will be able to practice healthy money management anytime, anywhere, at home or on the move. Your kids can see everything on FinPod about their tasks and objectives assigned to them, their savings and rewards, as well as setting their eyes on the most coveted prizes – say if your kids want to buy a PS5, then let them work and save for it!
Parent and Child Mode in One App
The FinPod App has both the “Parent Mode” and “Child Mode” user interfaces. Parents may manage the financial goals of their children at any time, as well as monitor task progress, review tasks, and distribute rewards in real-time. In order to increase engagement and promote independence and self-discipline, children can view their assigned tasks on their separate Child account through their parents’ cell phones, where they can regularly check the tasks off the lists, and follow the progress of their savings goals. When your child is old enough to own his/her own cell phone, FinPod can be installed on a child’s own cell phone and paired with the parent’s account to allow syncing of account information.
All of FinPod’s core features, including both the parent and child accounts, are FREE of charge to use. You can freely explore FinPod with your child and make every moment of your life a chance to learn about finances.
Experience FinPod today!
Your next-generation super app to organize family tasks, rewards, pocket money and entertainment for your children.
Start financial education with your children today. Download FinPod and complete registration in just 5 mins.