Children working for their money

With money getting tighter for most South African families, few parents can afford to dish out cash to their children for every whim and fancy. So, many parents are becoming more discerning about why, when and for what they hand out money to their kids.

But, what can and should parents do to help teach their children the value of money – and that it doesn’t grow on trees?

In the United Kingdom – according the results of a consumer survey by Sheila’s Wheels Home Insurance – most (63%) parents are trying to teach their children the value of money by getting them to help around the house to earn their pocket money.

A 2007 survey by international market research company, Synovate, revealed that only 48% of South African children have to do chores or work to qualify for their pocket money, compared with the USA, where 96% of children have to earn their allowance. 91% of South African parents were however actively trying to teach their children the importance of saving money and how to do it. 74% of South African parents teach their children how to check and compare prices in order to get the best deal while 54% of parents in Cyprus actually go as far as to teach their kids about the workings of the stock market.

When it comes to pocket money, the survey showed that 34% of South African youngsters get a set amount of pocket money every month and a further 26% are given an amount that varies according to what their parents can afford. In Cyprus, 35% of children are given money by their parents whenever they need it.

“Giving your children pocket money is a great starting point for teaching them about the value of money. Having their own ‘income’ provides kids with a sense of independence and, when taught how to work within the parameters of their budget, children learn a sense of responsibility and vital money management skills that will stand them in good stead later on in life.

“From a young age, children should be taught that there isn’t an infinite supply of money and that living within their means is crucial to their financial survival. In this day and age, with the expense of living going up, children need to understand that parents cannot afford to pander to their every whim. Generally speaking, children learn their attitude towards money at home.

“Offering pocket money and sound guidance on how to spend it thoughtfully also goes a long way in assisting parents with managing their children’s expectations as well. They learn the consequences of spending it wastefully because once it’s gone, it’s gone,” says Dial Direct Insurance’s spokesperson, Bradley Du Chenne

But should children really be expected to work for their pocket “dosh” by helping around the house?

Well, Du Chenne believes that this is something parents must decide for themselves.

“On one end it might be beneficial to make your children work for a portion of their pocket money in order to teach them that people generally must work for their money. Money doesn’t typically come free.

“After all, when your teenager gets his or her first afterschool job, the link between working and getting paid for it will become quickly apparent. So, whether you decide to make your children work for their allowance or not is a subjective matter and there’s no right or wrong answer,” says Du Chenne.

“What’s most important is teaching them to spend their money wisely so that they have enough to last them the month and, encourage them save a portion of their ‘income’ for those big ticket items. It is important that you don’t supplement your child’s pocket money. The idea is to teach them to live within their means,” he concludes.