how does pocket money teach children to be good at differentiating between needs and wants
Answers
Answer:
Money Matters: Knowing the Difference between “Wants”
and “Needs”
One of the most difficult tasks we face as parents is to help our children
understand the difference between “wanting” something and “needing”
something. Individuals face choices every day about what is “needed” for
survival and well-being, and what we would “like to have” to improve our
daily lives.
The “needs” versus “wants” dilemma continues throughout childhood into
the teen years, and on to young adulthood. Priorities and focuses shift as
families enter different phases of their lives.
Even for adults, the lines between “wants” and “needs” are often blurry.
When it comes to money, spending decisions are often unclear, regardless
of age.
From an early age, children can learn the value of money. Parents guide
their children’s relationship with money in various ways:
- Teach through allowances, gifts, earnings, savings, and spending decisions.
- Discuss where income “comes from,” and where money is spent.
- Play money, with both coin and currency, can be an excellent tool to
help children visualize “how much” something costs. You may want
To use a piggy bank and cash register to symbolize “savings” and
“spending.”
- When children are old enough, parents may want to let them have a
- voice in some family spending decisions.
- Encourage family dialog; spend time talking as a family.
- Parents should assist children with establishing a savings or checking
account, help them record what they spend, and plan savings for a
not-too-distant future goal. It is an excellent way to teach a child
practical money management skills.
Helping children determine a “want vs. need” when purchasing something
with their own money establishes a baseline for knowing the value of
money.
It is also important to let children make some poor choices when it comes
to spending. They will learn from their mistakes and be more inclined to
make a better choice next time. Financial lessons learned during childhood
will be long remembered.
By the time children have finished high school and contemplate the future
as a college student or member of the workforce, parents hope their
children can make good money decisions. It is important to talk with your
children and teens about money matters before they are off on their own.
Young wage earners quickly discover the price of basic “needs” can be
much higher than their income. Learning to balance income and expenses
takes practice. Dollars spent on unnecessary items (wants) come at the
expense of other things, i.e., necessities. Good money management skills
are critical as young adults go off on their own.
Answer
learning financial is key to survival the sooner kids learn better it is.
parents should transfer equal amount to their age they should teach about value of hard work and money and judicial use of resources although i think kids should get money when they become teens as growing up they may have positive effect to their responsibility and how to use and save their pocket money .
i hope it helps