Financial Management in Children: Today Need, Tomorrow Necessity

Nearly 80% of young people today will never be able to retire. Why? Because they lack the personal finance training that leads to longterm planning and future security. Connecting the dots between kids and money management skills prepares them for the financial realities the world will face over the next century. Pocket money is one of the first ways for children to learn the basics of managing money – a skill they’ll definitely need for life – and it makes children feel independent. Whether to give pocket money, and at what age, and how much to give are issues that often concern parents. There are many ways to handle this. To a large extent it depends on family values, practices and finances. The main reason for giving children pocket money is to help children learn to be able to manage money while they are still young and parents can guide them. It also may help children to feel that they are important members of the family, because they are given part of the family s spending money.