A teenager needs to be given pocket money so that he gets acquainted with the basics of financial literacy, can optimize his expenses. The psychological component is also important - there is self-confidence, the opportunity to show independence.
Adolescence is a great time to study financial literacy. During this time, many parents start giving their children pocket money. And this is correct, since it is difficult to study their functions, without the ability to dispose of.
According to sociologists, pocket money is a fixed amount given to a teenager for personal expenses. This means that he can dispose of it at his own discretion. The sooner you get to know the world of finance, the sooner a respectful attitude towards your spending and parenting will appear. But full awareness of responsibility comes at the moment when a young man begins to earn money himself.
Psychological aspect
When wondering why a teenage child needs to be given money, consider the psychological side. For many, this is an opportunity not to look like a "black sheep" against the background of other children. This is an opportunity to have a bite to eat at break with friends, to buy a beautiful accessory without the help of parents. This is how financial independence begins to manifest itself.
Pocket money allows you to:
- feel more confident;
- correctly place accents in terms of spending;
- do not differ from their peers.
Financial literacy
In order for a teenager to learn how to manage finances rationally, to get acquainted with the basics of the financial world, you need to follow some rules. The money should be given out for pocket expenses in the same amount once a week. If you are planning a large purchase, let the child save up by itself, putting aside some of the funds.
If you haven't explained what a family budget is, it's time to do it. Very quickly, the child will learn to plan purchases, accumulate, spend money correctly. These are the main reasons why you need to give pocket money.
Today, some banks offer to open additional deposit cards designed for use by minors. Despite linking the account to the parent, you can always set a limit. If you decide to use this service, you can teach your child:
- receive additional bonuses;
- pay in shops with a bank card;
- set goals and achieve them;
- save money for big purchases;
- use terminals.
Thanks to this, by the age of 18, a person begins to understand the difference between a deposit, an account and a loan. There is an opportunity to correctly assess your financial position, to correctly assess bank papers and promotions.
In addition, there is an acquaintance with Internet banking, payment for purchases in online stores. From this point of view, pocket money is taught to be extremely careful, to avoid fraudulent schemes, which is sure to come in handy in adulthood.
Optimization of expenses and control over your savings
Today you can hear a lot about cost optimization. Pocket money teaches this aspect as well. Parents can visualize how he will have more free money if spending is optimized. This will avoid unnecessary and sometimes dangerous purchases. Success in this business always begins with the parents.
If the child does not cope or is interested in the optimization issue, you can attend special courses or master classes. They teach children and parents in a playful way about the basics of financial literacy. They allow you to understand what money is, how to handle it correctly.
Pocket money is also a way of teaching a teenager to work. He can start earning money himself. There are many ways to do this: using freelance exchanges, working as promoters, selling homemade products, and more.
In conclusion, we note that in Germany the issue of pocket money has been resolved at the legislative level. German teenagers receive from their parents 20 to 30 euros per week. These are acceptable amounts for many families. If the parents do not allocate funds, the child can complain about the violator of the law.
