Teaching children to manage money

When their school days start, many children are given their first pocket money. Parents need to know that it is not enough just to give the child money for small ex-penses. It is very important to teach the child to manage them properly. First of all, tell the child how money is earned. The family must discuss how much money the child will be allowed a week in the presence of the child. Explain what for and why the money is given, and list its spending options. The amount of money should not de-pend on the child behaviour, performance, or help to the parents. It is more important to taking into account the age of the child, his readiness to dispose of money, the cost of food and goods in your area. The child should be warned about security, theft, and taught how to use a wallet and explain why he should not brag about his money in the presence of other people. Encourage the child`s savings. Explain that the child’s pocket money is part of the family budget, and at first ask to report on purchases. The child will only benefit in the adult world from these skills.