They find purpose and pride in their purchases and appreciate them more. This also helps them gain independence and confidence to make their own decisions. Be it after months of savings or after earning some extra allowance, buying something on your own is an achievement. Sense of achievement: When kids buy something from the money they have saved, the sense of joy is unmatched. Kids might overspend on little things though, talking to them about money is an active attempt to teach them to make smarter spending decisions. As parents, it is important to teach children the difference between needs and wants. Kids struggle with impulse buying behavior. Learn from mistakes: Money is an important aspect of life. To promote savings parents can also provide some saving incentives for significant milestones. The first step would be to teach the kids the difference between wants and needs and then set saving goals.

It teaches you the value of planning and patience. Habit to Save: The habit of saving needs to be inculcated from an early age.

This ensures experience-led growth among children and teens. Exposure to real-life situations acts as a vital step in this learning process. Value of Money: When kids get their own pocket money, they learn to make smart choices about spending and saving. This way they learn to develop financially responsible habits in the long run. It helps them outline their money and track their expenses. Kids may start with preparing a personal spending plan or a budget. Plan & Spend: Regular pocket money helps kids to be more conscious of how and where to spend. There are multiple benefits of giving pocket money to children, let's go through them. It helps curate smart, sensible financial habits and better decision-making skills. They gradually learn to buy things that they need and are of use. By giving pocket money you can teach and empower children to spend responsibly and spend independently. Children need direction while learning about budgeting, saving, and other money management skills. Giving pocket money to your kids is a great way to teach them money management while young in their life.

Money on pocket