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Pocket Money: First Step Towards Financial Learning for Kids

Monday, 01 April 2013, 15:15 IST
By SiliconIndia

Bangalore: Pocket money is the first stage for your kid to learn the basics of money managing. It helps children to become independent and also creates an opportunity for them to learn about spending and saving.

But what should you take care of when you are paying allowance or pocket money to your kid? Making mistake is a part of the process. So, Make sure that you guide on how to spend their pocket money wisely. Your guidance will make a huge difference in your child on managing money throughout his life.

Here are few tips for giving pocket money to your child, listed by Ashna Ambre from ET:

1. Fix a Certain Amount for Every Month

You need to fix the amount for your child’s pocket money according to your convenience. If your child is 7 years and above then start giving your child a small amount of pocket money, depending on his/her ability to handle the money. If you think that your child is not ready to take the responsibility, you can think about it after few months.

Once you decide on giving pocket money to your child, start giving them small weekly payouts, so that it will be easier for them to manage. Gradually increase these weekly payments to monthly amount.

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