Hi everyone, I just wanted to share this with you.
Here is an article I just posted on my Allowance Secrets Blog.
Enjoy!
Is pocket money an allowance and is it good to give?
This is really a two-part question. So, let’s begin at the beginning. Stay with me now. This is going to get very interesting. ;o)
Let’s start off by defining the words “pocket” and “money” as used in the expression “pocket money.” “Pocket” being the adjective before the noun “money.”
A “pocket” can be defined as “very small or miniature” and “money” can be defined as “currency officially issued by a government.” So “pocket money” can be defined as “very small or miniature currency officially issued by a government.” By jove, I think we’ve got it! ;o)
An allowance, on the other hand, is defined as a “regular giving of money.” So in answer to the first part of our question “Is pocket money an allowance?” the answer would be yes. Some parents identify the bestowing of money to their children as an allowance and some use the words “pocket money.”
What about the second part of our question “and is it good to give?” And why did I use the word “bestowing?”
As a parent, you are bestowing (defined as “to give or present, especially as an honor”) money to your children when it is given as pocket money or an allowance.
I do not believe in giving or bestowing money to children.
I do believe that money should be earned, not expected. When it comes to money, I believe in entrepreneurial skills and creative thinking. I would rather you foster financial independence in your children by helping them find kid-friendly, creative ways to make money than simply bestowing pocket money (an allowance) to them.
I can hear your questions right now. “How on earth can my small children earn their own money? Shouldn’t I give them some pocket money?” ;o)
The decision to allow children to earn money rather than be given or bestowed money is a very hot topic debated for years by parents. There is no right or wrong decision. Parents need to find what works for them. We all want our children to grow up secure with their money. Establishing powerful financial habits while children are young will increase their chances of ending up on a strong financial ground.
If you do decide you want your child to be given pocket money (an allowance), bestow a small amount. An amount that covers a child’s needs not his or her wants. Children need to practice with money. They need to make decisions about what is more valuable and what constitutes a financial priority. Remember, great choices are celebrated. Mistakes are choices that produce lessons that last a lifetime. Money can, and should be, a means, not an end.
So, to answer your burning question “how on earth can my small children earn their own money?” Have a read of my ebook “Allowance Secrets: To Give or Not To Give” where the top 25 “kids and money” experts, family coaches, and highly successful entrepreneurs share their personal opinions and tips on whether or not to give your children pocket money (an allowance). Read what they have to say about combining chores for kids with pocket money.
Teach your children that if they want money, they have to think of ways to create it. Encourage your children to find their inner entrepreneurs by providing them with some small pocket money (an allowance) so that they can become Clever with their Dough and have the positive self-esteem needed to live happy fulfilling lives as adults.
Cheers … Amanda van der Gulik … Excited Life Enthusiast! ;o)
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