Pocket money is like a double-edged sword. While it has become nearly inevitable, and may provide an opportunity for plenty of lessons for the child, psychiatrists say, unmonitored money spending may even lead to deviant behaviour among children.
“Nearly every child gets pocket money these days, though there is a vast difference in the amount each child may get. Technically, it is a fantastic opportunity to teach the child about the basics of finance and accounting in a manner they will never learn elsewhere. Teaching the importance of money and discretionary spending is also possible,” C.Kumarababu, senior child psychiatrist says.
But, the child's attitude towards money depends essentially on how he sees it being spent at home, and primarily by the parents. “The child watches how parents spend money, and how they treat it. There must be an agreement about what they child should spend the pocket money on, and discussions, perhaps monthly, on what it was actually spent on,” he adds......Read More
Source: The Hindu