Essay on pocket money advantages and disadvantages
Answers
Advantages;
One World News
Pocket Money for Kids- The Advantages and Disadvantages
By Editorial Staff -April 30, 20120
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Pocket Money for Kids- The Advantages and Disadvantages
Pocket Money for Kids
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:
Related : 7 Ways To Save Money Efficiently
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;
One World News
Pocket Money for Kids- The Advantages and Disadvantages
By Editorial Staff -April 30, 20120
Facebook Twitter
Pocket Money for Kids- The Advantages and Disadvantages
Pocket Money for Kids
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:
Related : 7 Ways To Save Money Efficiently
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.
Pocket Money for Kids- The Advantages and Disadvantages
Pocket Money for Kids
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!
Just frame it nd u r ready to rock!
Answer:
In the main, pocket money is beneficial. There are a few disadvantages, but with careful management, these can in fact become learning opportunities in themselves. The Frivolous Spender: By handing over control of some pocket money to your child you may discover they repeatedly 'blow' the money on frivolous spends
Explanation:
Pocket money has a wealth of benefits for both the child and the family. In fact, kids who get pocket money are more likely to develop strong financial planning skills, and are less likely to get in debt as adults. Read on to find out more about the benefits of pocket money and how much you should give.
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Pocket Money – The Benefits
The above factor alone should be enough to sway you in to giving your children pocket money. However, there are a wide range of benefits to giving pocket money.
• Financial Planning: Since 2014, financial literacy features on the UK National Curriculum. Pocket money reinforces this – teaching children the benefits of saving, careful spending, and money management.
• Lower Risk of Adult Debt: According to the ING survey of 12,000 parents across Europe, giving children pocket money reduces the risk of them getting in to debt as adults. Pocket money is the building block for adult self-sufficiency.
• Make a Future Saver: Learning young, through pocket money, encourages a lifetime of saving where delayed gratification is appreciated.
• The Value of Money: It’s a tricky concept for kids to grasp, but one they need to understand. To them they literally see cash come out of a hole-in-the-wall. Pocket money, especially if earned through chores, enables them to learn what money is actually worth, and its value. They learn to prioritise wants and needs.
• A Sense of Purpose and Achievement: By gradually saving some of their pocket money towards a goal, children develop a sense of purpose and pride in their achievement. They also learn to value possessions more, when they have had a hand in paying for them.
• It Limits the Pester-Power: Marketers know all about it, and any parent standing at the checkout of a supermarket does too: Kids have pester-power. However, when it’s their money they are spending, they suddenly become more savvy spenders. You’re not stuck buying the fiftieth packet of trading cards because they just have to have ultra-rare Number 24.
• It Teaches the Value of Hard Work: When children can earn pocket money in exchange for jobs they realise the intrinsic value of hard-work.
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Are There Disadvantages of Pocket Money?
In the main, pocket money is beneficial. There are a few disadvantages, but with careful management, these can in fact become learning opportunities in themselves.
• The Frivolous Spender: By handing over control of some pocket money to your child you may discover they repeatedly ‘blow’ the money on frivolous spends. Try to stand back a little and allow this to happen. It’s learning through mistakes. By spending frivolously, they will learn the hard lesson that they never achieve their saving goal, and run out of money fast. If you’ve still got a frivolous spender on your hands, it might be time to start laying down some pocket money rules such as save half, spend half.
• They Compare Themselves to Friends: There’s always going to be peer pressure, and it can be hard if you are unable to give your young one the same as their friends. However, don’t panic. Firstly, chances are there is some playground exaggeration going on. Secondly, remember that having a restricted budget is a good thing for learning financial planning.
• Money Becomes a Sign of Love: Some children, and parents, can get in a situation whereby the giving of cash becomes equated with love. For this reason, it’s sensible to set a weekly or monthly amount which doesn’t vary greatly. This doesn’t mean that they shouldn’t be expected to contribute if they have wilfully damaged something, but it separates money from affection