What Are the Advantages of Giving Pocket Money to Kids?

What Are the Advantages of Giving Pocket Money to Kids?

Every parent wishes for their child to contribute to the household chores, to make their life a little easier and the children, more responsible. Especially in a household where both the mother and the father are working professionals, it becomes even more critical for the children to pitch in the household chores.

However, we all know, children love their video game sessions and hanging outdoors. Rare are the children who voluntarily opt to act as a helping hand in the household chores happily. It can get daunting for most parents to convince their kids to contribute to the daily household tasks, let alone the basic ones. It is challenging to get the kids working on the chores, and it sometimes can even turn into an unwanted quarrel. But, we have a solution to make this task an easy one! Paying your kids for household chores is a brilliant idea. Pocket Money acts as an incentive for the children to happily help in the assignments, with a strong motivation backed by determination.

What is Pocket Money?

A stipulated amount of money we get from our parents for our expenses on a weekly or monthly basis. The objective of pocket money is to educate teens in the art of money management and prioritizing their needs and desires. Let us embark on this journey to adulthood. Gen Z, assemble!

top advantages of giving pocket money to kids
  • Sense Of Financial Independence
  • Money Management
  • Financial Planning And Savings
  • Easy Way To Get Them Perform The Tasks
  • Making Them Future-Ready
  • Getting Better At The Job
  • Raises Respect Towards Their Parents, The Bread Earners
  • Sense Of Maturity
  • Organisational Skills
  • Personality Development
  • They Do Not Receive An Allowance Just For The Sake Of It

A few things that act as a strong diver in paying your kids for household chores are:

1. Sense Of Financial Independence

top advantages of giving pocket money to kids - akudo blog

By paying your kids for tasks, you give them a sense of financial independence. It allows them the freedom to earn their own money and spend it the way they want to. The children no longer depend on their parents for money to be spent on food, games, etc.

2. Money Management

top advantages of giving pocket money to kids - proper money management

By providing the kids with a monthly allowance, you help them learn the importance of money and money management. As they get their hard-earned money, they decide to spend it wisely and only on the most significant things. As parents, you have to make sure your kids understand that once they spend all their pocket money before time, they won’t get extra cash.

Kids understand the value of money and realize the efforts that go behind earning it. Often, the kids segregate their monthly expenditure and only spend on things that matter the most to them, and leave the other stuff for the succeeding month. They need to be more conscious when spending money to fulfil their needs and desires. this will be their first step towards making responsible decisions in life.

also read: How do rich teach their kids about money?

3. Financial Planning And Savings

top advantages of giving pocket money to kids - good financial planning

Besides money management, kids also learn how to plan their finances in the long run. If your kid is fascinated by the brand new PS5 and wants to get it home for themselves, they plan their upcoming finances accordingly. It also teaches them the power of saving and the joy of investing in something that is of utmost worth. Kids will develop a habit of saving from their student days which will be helpful in future as well.

4. Easy Way To Get Them Perform The Tasks

top advantages of giving pocket money to kids - easy way to perform tasks

Most kids these days try to escape anything that requires their time and effort. When it is about household tasks, they detest doing it even more. Giving them financial rewards is an easy way to get them help and contribute to the job happily. It also makes the task of convincing the kids more manageable, as the children decide and make sure to complete the job because of the attached rewards.

5. Making Them Future-Ready

top advantages of giving pocket money to kids - akudo blog

Incentivising the kids monetarily is not just to get them to do the household tasks, but also to prepare them for the future. When kids grow up, and it is time to be independent, have a family, and get a house of their own, it is imperative for the then kids, and now adults, to know how to perform such tasks without any hassle. When they are asked to perform these tasks from a young age, they slowly adapt to them. They then get known to every job related to a household which an individual is expected to be aware of.

6. Getting Better At The Job

top advantages of giving pocket money to kids - become better at the job

As and when you start paying your kids for contributing to the household chores, they start performing better to get a raise in their allowance. It helps increase their efficiency at work and helps them be motivated to get the job done to the best of their abilities.

7. Raises Respect Towards Their Parents, The Bread Earners

top advantages of giving pocket money to kids - raise respect towards parents

When the kids realize how tough it is to earn money and the hard work that goes behind even a simple task of, for example, washing the dishes or taking the garbage out, the respect for their parents also increase. They start seeing the effort made by their parents on daily basis, they see their parents in a new light of how cool their parents are. The kids understand how hard their parents work to run a prosperous household, and the notion of ‘money does not grow on trees’ starts making more sense to them.

8. Sense Of Maturity

top advantages of giving pocket money to kids - sense of maturity

When the kids are assigned household tasks, they plan their entire day accordingly. Kids never want to forego their playtime. So, when they know they need to complete a particular job, they make sure that their time management skills are unparalleled. It instills a sense of maturity in the kids. They feel that they must complete the job and accurately plan other things beforehand.

9. Organisational Skills

top advantages of giving pocket money to kids - organisational skills

When the kids are asked to perform specific household tasks from a young age, they become more organized. Tasks like arranging the dinner table, making the beds, assembling the utensils, etc. immensely increase a child’s organizational abilities. This also helps them in the long run, as they get used to properly arranging things and day-to-day tasks.

10. Personality Development

top advantages of giving pocket money to kids - personality development

Having the kids help in household chores acts as a betterment in their personality. Most kids that do not believe it is their duty to assist in household chores, turn out to be inconsiderate rebels. However, when kids are provided with monetary rewards, they are encouraged to perform their duties. The daily task of helping in chores reflects their personality. It makes them kind towards their family members, to begin with. It also makes them responsible and self-sustainable, since tasks like cooking and laundry help a person throughout their lives.

11. They Do Not Receive An Allowance Just For The Sake Of It

top advantages of giving pocket money to kids - they do not receive loan for the sake of it

Every child expects an allowance, irrespective of the fact if they are asked to help with household chores or not. Having them contribute to housing tasks just acts as the icing on the cake. Parents should talk to kids before deciding on their pocket money. They can be given fixed pocket money and for an extra income, kids have to help with household chores When they are asked to assist in such tasks, they feel that they are getting paid for the performed duties, not only because they ‘should’ get the money.

Bonus Tips

A) Introduces Kids to Budgeting

top advantages of giving pocket money to kids - budgeting

Being a young teenager, it is but natural to have wants that may not be necessary. Although, as they grow, kids learn that it is impossible to always get everything the heart demands. Thus, by having a limited amount at their disposal, shopaholic teens will learn to practice budgeting and saving. Budgeting helps kids to avoid careless expenditure and encourages planned expense.

B) Earning Trust

top advantages of giving pocket money to kids - earning trust

Young adults always want to be treated as grown-ups. Have you ever heard your child say “I am old enough to do get this done!” or “I’ll decide which car we’re buying”, they want to be a part of big decisions. Being given the freedom of pocket money is their chance to win their parents’ trust. They will also gain the confidence to make all their future decisions responsibly.

Nevertheless, the debate if paying your kids for household chores is a good idea or not is highly argumentative and subjective. Some people believe that children should be taught to do the tasks as their moral duty and should not be monetarily compensated for the same.

However, some believe that incentivizing the children for work teaches them many important things in life. Talking with experience, we think that paying your kids for household chores only helps them grow in life. Some basic chores like making one’s own bed or cleaning the wardrobe can be the tasks children are asked to do irrespective of any financial assistance. However, paying them for the other duties around the house will keep them motivated and encourage them to look forward to the chores. As discussed above, monetary incentive excessively helps teach the kids valuable aspects of life that will stay with them forever and benefit them even as adults.

hope you loved this blog. you might also like:



scan the QR code to download the akudo app

©2022 akudo.

get your zero balance student account with a personalised VISA card

spend, save and simplify your finances

©2022 akudo.