Extended family
If you have a separated or extended family make sure you are all on the same page. Grandparents may well feel they have a right to spoil their grandchildren but make sure this doesn’t undermine your decision if you have said no. Warn relatives if you are dealing with pester power at the moment and explain how you are helping your child to learn the value of long term financial planning.
Spending
You may want to monitor what your children spend their pocket money on. For example, if you’re managing a healthy diet for the family, you may want to encourage your children to buy things like magazines, CDs, DVDs or toys instead of chocolate and sweets.
Within these boundaries, however, it’s important to let your children have a degree of control in how they choose to spend or save their money, so that they can begin to learn its value.
“My kids never really valued how much toys cost and just thought my credit card was endless. Now that they manage their own pocket money they think twice before they buy something and often reject something because they don’t think it’s worth the money. It has cut down the pester power in my house!”
Planning ahead
If your child wants extra money to buy something special, you may choose to allow them to borrow from next week/month’s pocket money.. This can be a viable idea if the item is likely to be unavailable by the time they have saved for it, but try not to let it become a regular habit.
“If my children do their homework without a fuss and don’t get into trouble they know they will get a treat at the end of the week – a trip to the cinema or a pizza night.”
Special events
It’s worth thinking about special events such as holidays or days out. Encourage your children to save a little each week if you are planning a holiday so they have money to spend, and don’t have to pester you for more.
“We extend pocket money if we go away on holiday. We tell the kids how much they have before we go so they choose what to spend their money on. It also means we don’t get pestered every time we pass a souvenir or trinket shop.”
If your children give you the old ‘so and so gets more money than me’ line, don’t feel under pressure. Every family does things differently and, while talking to other parents may give you an idea of how much other children are getting, it doesn’t mean you have to match it. Your children may get less pocket money but it balances out with other things you provide for them. Stick to your own boundaries and only give them what you can afford, and what they need.