Pocket money: teach your child to manage finances with these 5 tips
Pocket money teaches children to manage their own budget and to become independent.
Giving pocket money to children is a common occurrence in many Belgian families. But it may also raise certain questions. Here are 5 important tips to help you in your decisions.
1. Agree on a set amount
Giving a pre-set amount of pocket money helps you avoid weekly or monthly arguments. Your child will know what to expect, which helps them manage their budget. That’s why it’s best to avoid breaking your own rules by giving them extras on the regular. When you do, make sure to clearly state why they are receiving the extra money – for example, for doing chores around the house. And don’t top up any gaps in their budget – this teaches your child that they can keep drawing on your financial support indefinitely.
2. Clearly indicate which expenses you will pay for
To set a reasonable amount of pocket money, you must first decide which purchases your son or daughter will be responsible for. It stands to reason that you will up their monthly allowance if your child has to pay for their own clothing. Clear agreements help you avoid misunderstandings later.
3. Give pocket money on a set day
This way your son or daughter will learn to plan for urgent expenses, and to distinguish which purchases can wait until later. Decide on the ideal moment in agreement with your children.
Some statistics about pocket money in Belgium:
Four in ten children in our country do not receive pocket money. 30% of minors receive between 20 and 99 euros per month. For 12-year-olds this varies between 10 and 39 euros, while 18-year-olds receive between 99 and 149 euros per month. 35% of children spend their money on hobbies and leisure activities, while 15% also use it to buy clothing, concluded an investigation by Wikifin.
4. Do not interfere with pocket money expenditure
Learning to handle money wisely is a process of successes and failures. Do not judge your kid's pocket money spending choices, even if they are spending it on what you would consider trinkets. Do not prohibit certain types of expenses. Instead, try having an open conversation with your son or daughter. Provide them with good advice and handy tips around budget management and savings.
5. Keep an eye out with the ING Banking app
Every family situation is different. Take into account your unique situation. Whether you keep the reins tight or only provide gentle guidance every now and then, you should be the judge of what works best for your children. With the ING Banking app, you can check your children's financial activities at a glance, wherever and whenever you want. If necessary, you can intervene in time and set limits.
Help your child manage their finances with the ING Banking app.