Are you having troubles deciding on how much pocket money to give your children before sending them to school? During your days as a student, you should be able to vividly remember how cheap a bowl of noodles or chicken rice is! 70 cents a day could provide you with a satisfactory meal in our school canteens!
However, times have changed!
The cost of food in school canteens has inflated over the years. You will be shocked when visiting your children’s school canteen and learning the cost of food today! The days of 70-cents providing us a full meal are long gone! Such an amount can barely afford your children even a drink!
Before we begin….
Many of you parents are wondering on the frequency in which you should give your children allowances. Should allowances be given on a weekly or daily basis? For primary school students, we would recommend a daily allowance! This would be more effective in teaching your children to learn to save!
Advantages Of Providing A Daily Allowance
#1 Benefit: Providing a daily allowance will allow your children to understand the benefits of saving!
Placing their remaining money into their respective piggy banks at the end of the day is a good habit that should be practised when young. Such savings can be spent on candies or affordable toys if they choose to do so!
Such habits introduce and encourage the concept and habit of saving to your children as they will eventually see the benefits saving money bring! Hence, as parents, you will be able to witness your children gradually starting to save more and spend less. This is brought about by the incentive of saving up to purchase an item which they will truly cherish!
Assuming you provide your children with a weekly allowance, what will they survive on if they spend their entire allowance on the very first day?
Most young children are unable to resist the temptation of spending heavily on the first day upon receiving their allowance and as parents, you will then have no choice but to give your children more money. This vicious cycle will continue. As a result, your children will be unable to cultivate the habit of saving.
Now, How Much Daily Allowance Is Considered To Be The Right Amount?
#1: Inculcating A Sense of Financial Responsibility
The act of placing money in the hands of your children can give them a sense of responsibility.
As parents, you should introduce and discuss with your children the importance of saving before giving them their allowance. Tell them how difficult it is to earn money and teach them the importance of handling money well.
Such talks will allow your children to learn and adapt better decision-making skills with the money they have!
#2: Understanding What The Money Is Spent On
If possible, do take the time and visit your children’s school canteen.
This provides you parents with a rough idea on the pricing of food and snacks available in your children’s canteen! It is through such ‘excursions’ that you will be able to derive a suitable amount for your child!
Parents should also discuss with their children to understand if they have enough cash to survive in school on a daily basis! If you are still worried that the amount you are providing is insufficient on certain days when your children have to remain in school for extra co-curriculum activities, do include an additional $1 – $2 to ensure your children will not go hungry!
#3: Using A Formula
Many parents often rely upon a formula which co-relates their children’s age to determine an amount suitable for their children’s allowance. Assuming your child is 7 years old, a daily allowance of $7 can be given! As your child becomes a year older, an increase of 50 cents can be given!
This can be done when you parents have the confidence that your children have a better understanding of the concept of saving as they grow older.
#4: Working Chores For Additional Allowance (Gamification)
As parents, you would want to allow your children to understand how fortunate they are compared to other children overseas. Your children are able to have a roof over their head and not having to worry with regards to their next meal.
Hence, you should believe that your children have a role to play when it comes to household chores. Such activities will allow your children to be grateful for the facilities and convenience they possess at home and also instil a sense of responsibility.
By promising a monetary incentive after the completion of a task, your children will understand how difficult it is to earn their own money and will not take things for granted by spending unnecessarily.
As a parent, you would want to ensure that your children have adequate funds to survive comfortably in school on a daily basis. You definitely do not want them to go hungry while saving up to purchase a toy they desire.
You can imagine how disastrous such actions could potentially become.
Always ensure that your children understand how allowance given should be used.
Additional allowance can always be saved or earned as such savings can be used by your children in the future to purchase anything they like. Have them understand that when the money is spent, it cannot be recovered until they start saving or earning it back again.
If you’ve observed your children are practising good money saving habits, consider rewarding them with a treat or even a pretty stationery! This would serve as an encouragement to save even more. The satisfaction they are able to attain when purchasing an item through their own savings can be priceless to your children.