Are you intending to start giving money to your kids? Well before actually going for it, read the article and think twice. Learn about the drawbacks and benefits of giving pocket money to little ones.
With economy of capitalization people are acquiring more and more wealth. Children spend money lavishly and without giving a second thought.
Nowadays it has become a practice or tradition to give too much pocket money to young children. It is a harmful practice as it inculcates extravagance in children.
Lets us understand the advantages and disadvantages of giving too much pocket money to kids:
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Advantages of Giving Pocket Money:
1.Kids realize the value of money as they feel responsible to pay back for their purchases. They become sufficiently responsible in matters of money.
2.They learn to manage their budget in their after-life.
3.It helps children in making important decisions pertaining to money and expenditure. It provides them a useful sense of purposes and achievement.
4.The parents save their time in buying small things for their kids as the children can do it on their own. Parents can spend this quality time, thus saved in a better way with their children.
Disadvantages of Pocket Money:
1.The most important drawback associated with pocket money is that it makes them callous with money. They are not careful while spending money on frivolous things.
2.They do not realize the worth and value of money and are likely to take hasty and wrong decisions regarding finances.
3. With no supervision, a child might get into trouble in matters of money.
4. The child might be bullied by others if he/she carries too much money as pocket money. So abstain yourself from endangering your child’s life from any kind of mishap.
Make sure to keep these important points in mind before giving money to your kids. Remember money simply cannot express your love or affection towards your kids. Before giving them money, teach them to spend it smartly and wisely!