Pocket Money, also known as an allowance, is a small amount of money given to children by their parents on a regular basis. This practice has been around for generations and has its supporters and critics. While some parents believe it teaches children financial responsibility and independence, others argue that it can have negative effects. In this article, we will explore the advantages and disadvantages of giving children Pocket Money, as well as discuss the growing trend of earning money online through real money earning games.
Why Children Should Not Be Given Pocket Money
Many parents believe that giving their children Pocket Money is a way to teach them how to handle money and become financially responsible. However, there are several reasons why this may not be the best approach.
1. It Can Create a Sense of Entitlement
When children receive Pocket Money without having to work for it, they may start to feel entitled and expect to be given money without having to do anything to earn it. This can lead to a sense of entitlement and unrealistic expectations about money later on in life.
2. It May Cause Greed and Materialism
When children are given a regular allowance, they may start to develop a desire for more and more money. This can lead to greed and materialism, causing children to focus more on material possessions rather than valuing other things in life, such as family, friendships, or experiences.
3. It Does Not Teach the Value of Hard Work
If children are given money without having to work for it, they may not learn the value of hard work and the importance of earning their own money. This can lead to a lack of motivation and work ethic later on in life.
4. It Can Lead to Unnecessary Expenses
Children who receive Pocket Money may be tempted to spend it on unnecessary items, especially if they are not taught how to budget and make responsible financial decisions. This can lead to a waste of money and a lack of financial responsibility.
Pocket Money: Advantages and Disadvantages
While there are certainly valid arguments against giving children Pocket Money, there are also some potential benefits to consider.
1. Teaches Financial Responsibility and Independence
When children are given Pocket Money, it can be an opportunity for parents to teach them how to budget, save, and make responsible financial decisions. This can help children become more independent and prepared for managing their own money in the future.
2. Teaches the Value of Money
By giving children a set amount of money, parents can teach their children the value of money and the importance of making wise financial choices. This can help children develop good money management skills and avoid financial troubles in the future.
3. Encourages Good Behavior
Some parents give Pocket Money as a reward for good behavior or completing chores. This can be an effective way to motivate children and teach them the importance of working hard in order to earn a reward.
4. Provides a Sense of Freedom and Independence
When children are given their own money, they can have a sense of freedom and independence in making their own purchases. This can give them a sense of responsibility for their own choices and help develop decision-making skills.
Online Real Money Earning Games: A Growing Trend for Students
Another way for children and students to earn money is through online real money earning games. These are games that offer actual cash prizes for winning and completing tasks. While some argue that these games can be addictive and a waste of time, there are also some potential benefits to consider.
1. Encourages Creativity and Strategic Thinking
Many real money earning games require players to think strategically and come up with creative solutions to win. This can help children develop critical thinking skills and boost their confidence in problem-solving.
2. Teaches Time Management
To earn money through online real money earning games, students need to balance their game time with their other responsibilities, such as schoolwork and household chores. This can teach them the importance of time management and prioritizing tasks.
3. Helps Develop Good Money Management Habits
In order to win money in these games, students need to manage their in-game currency wisely and make smart choices. This can translate to real-life money management skills, such as budgeting and saving.
4. Can Be a Source of Income
For students who may not have the opportunity to work part-time jobs, online real money earning games can be a way to earn some extra income. This can give them a sense of financial independence and responsibility.
Conclusion
While the debate over whether or not to give children Pocket Money continues, it is important for parents to carefully consider the pros and cons before making a decision. Teaching children about money management, responsibility, and the value of hard work is essential, and there may be various ways to achieve this, whether through traditional Pocket Money or online real money earning games. Parents should choose what works best for their family and monitor their children’s behavior and spending habits to ensure they are developing good financial habits.
