“Don’t buy this.” Common mistakes when giving pocket money to children 0 12

A child can get their first piggy bank at the age of 4–5 years. Gradually, the child begins to understand that money serves as a tool to achieve certain goals. The amount that parents allocate for pocket money depends on their financial capabilities. It is most convenient to give money twice a month — on payday or salary days.

However, simply giving a child a certain amount is not enough. Filatova emphasizes: it is important to involve children in the financial processes occurring in the family as they grow up.

“We often do not share our financial difficulties. We try to hide that we have delayed salary payments or that money has run out due to a large purchase or expensive treatment. It is not enough to limit ourselves to the phrase ‘There is no money.’ Even a small child can be explained why there is not enough,” notes the expert.

A child forms their perception of finances based on the behavior of their parents. If adults do not adhere to agreements or do not explain their actions in various situations, it will be difficult to expect the same from children. It is useful to discuss why the amount of pocket money has changed (increased or decreased) and justify your decision.

“Another common mistake is that some parents use money as a means of manipulation. You should not threaten a child with stopping the provision of pocket money due to their behavior. This will not lead to the desired result and will only exacerbate conflicts in the family,” the specialist clarified.
Liar. A psychologist explained why children lie and how to respond to it
Read more

You can discuss in advance with the child what they plan to spend their savings on. If there are doubts about their choice, it is not advisable to immediately challenge their decision. Gradual discussion of the issue is key to reasonable expense planning.

When teaching a child the basics of financial literacy, the consultant recommends considering that the son or daughter may have their own pace in mastering money management skills. Mistakes in financial management can happen to anyone, even an experienced adult economist. Therefore, it is better not to rush the learning process and not to be too strict with the child.