“Mumma, I want to buy this latest makeup brand product (lipstick, eyeshadow etc.) before it ran out.”
“Mumma, I want more shoes, handbags and hair accessories for creating an impressive collection”
And the list goes on and on.
If you are a mom of teenage girls, then I am sure you could co-relate with these occurrences.
Yes, the teenage years is the time when girls (and even boys too) start paying proper attention to their looks and other lifestyle habits. They want to keep their wardrobe updated with the latest version of outfits. They often have a long list of various lifestyle essentials to be the best version of themselves.
Of course, there is nothing wrong in making personal grooming a priority. And you as a parent also feel great when your kids (in my case girls) look pretty princesses.
But what about the extra burden on your monthly budget.
With the conveniency of online shopping (Amazon is their best friend), it is hard to keep a check on expenses and sometimes, it feels too overwhelming, when things seem out of limit.
I was going through the same dilemma for the last few months. After giving a proper thought, I found an effective solution to overcome this problem. I had decided to give them a monthly allowance (pocket money) to manage their non-urgent and other personal expenses.
To make this move a success, I did lots of research and learnt the proper way to how to start a weekly or mothy allowance (pocket money) for teenage girls and make it right.
In this post, I am sharing more information on the same topic. I hope it will help other parents who are going through the same dilemma.
What are the benefits of giving pocket money to teenage kids? And what are some effective tips to make it successful? Read on to know more.
What are the benefits of giving pocket money to teenagers?
Introducing pocket money to teenagers allows them to become more financially literate. They learn the basics of handling money, making choices, and understanding the value of their hard-earned cash.
Managing their pocket money encourages teenagers to take responsibility for their own finances. It’s a gradual step toward independence as they learn to prioritize their spending and make decisions that align with their values and needs.
Pocket money provides a safe space for teenagers to practice budgeting. They’ll need to plan how to allocate their money for various expenses, such as leisure activities, snacks, clothing, and other personal desires.
What is the ideal age to start giving pocket money to kids?
Well, the answer depends upon multiple factors such as family finances, interest of kids etc. it can be different from different families. In general, when kids have a list of their personal expenses and when they show interest in managing money or minor finances on their own, then you can start giving them pocket money to build a basic sense of financial literacy.
What is the right amount to start with pocket money?
As per standard guidelines, “It should be equal to their age for weekly allowance, that means, for A 12-year-old kid, the amount will be $12 per week”. You can use these guidelines to get started or can set your own amount after discussing with your kids.
Is it ok to include household chores as a compulsory task while giving pocket money to kids?
Well, there are mixed opinions on this aspect from parenting experts. Some experts suggest you can make a list of household chores and can ask your kids to complete them to get their pocket money. While some experts say that you should keep household chores as a separate entity, and it should not be mixed with the concept of pocket money or getting paid.
Tips for parents to get started with pocket money!
Set Clear Expectations: Before you start giving pocket money, have a discussion with your teenager about what the money is for and what you expect them to use it for. This can include basic expenses, saving goals, and even some discretionary spending.
Start Small: Begin with a modest amount of pocket money and gradually increase it as your teenager demonstrates responsibility and good money management skills.
Teach Budgeting: Help your teenager create a budget. Teach them to allocate their pocket money for different categories, such as saving, spending, and any specific goals they might have.
Encourage Saving: Emphasize the importance of saving. Encourage your teenager to set aside a portion of their pocket money to save towards short-term and long-term goals.
Allow Mistakes: Part of learning about money management involves making mistakes. If your teenager spends all their pocket money quickly and regrets it later, use it as a learning opportunity rather than a punishment.
Use a Regular Schedule: Decide on a regular schedule for giving pocket money, whether it’s weekly, bi-weekly, or monthly. Consistency helps your teenager develop a sense of financial routine.
Involve Them in Family Budgeting: Share some aspects of your family’s budget with your teenager. This can help them understand the value of money, the cost of living, and the choices you have to make as a family.
Discuss Needs vs. Wants: Teach your teenager to differentiate between needs and wants. This will help them make more mindful spending decisions.
Encourage Earning: Consider linking pocket money to tasks or chores around the house. This teaches your teenager the connection between work and earning money.
Provide Guidance, Not Control: While it’s important to guide your teenager’s money choices, give them a degree of autonomy in how they manage their pocket money. This helps them learn from their decisions.
Discuss Long-Term Goals: Talk to your teenager about their long-term financial goals, like saving for a car, college, or a trip. This can motivate them to manage their pocket money more effectively.
Be Available for Questions: Make sure your teenager knows they can come to you with any questions about money. Create an open environment for discussing financial matters.
Pocket money or allowance is a great way for families to teach their kids basic money management. Remember, the goal is to gradually teach your teenager to become financially responsible and independent. The lessons they learn through managing their pocket money can be valuable for their future financial well-being.