Is there an age to introduce children to money? What is the practice these days? In our days – it was not the pocket money as much as the attraction of piggy banks and the importance of saving money.
While I see the need of colorful piggy banks which make noise as an absolute must, when does one start the concept of pocket money? Is there a right age to do so assuming that basic familiarity with Math and monetary concepts has been introduced?
The larger question is – do we just give them pocket money or do we link it to some chores accomplishment or behaviors or as a reward for academic and extra-curricular excellence?
I would tend to lean towards the need for them to understand the concept of giving services.
In their case it could be just doing simple tasks at home which entitle them to earn pocket money. More contribution and help in the house means more pocket money and also hopefully will make them more responsible.
I am sure all of you would agree with me for the need to make children more aware of discretionary spending – whether it is getting a treat or a toy or a book or maybe even contributing for the underprivileged sections of society.
Will this help in them gaining financial prudence? I certainly hope so.