Issue 2
Explore
It is important that the child, before
starting pocket money training, is able to
identify needs from wants and has learnt
this mantra very well;
Needs First, Wants Later. Waste Never
Checklist - Child Readiness
Before Pocket Money Training
1. Understands needs vs wants
2. Shows reasonable self control
3. Communicates freely with at least
one parent
4. Understand basics of money -
transactions, spending, saving,
borrowing - return
5. Knows coins and bills -
denominations, value
6. Does basic math - counts, adds,
subtracts, makes change
7. Shows basic responsibility and
accountability
AMJ 2017
It is recommended that both parents
agree on set rules and boundaries, before
giving pocket money to the child. Then
once set, let the child play within those
set boundaries - make mistakes, talk to
parents and learn from the mistakes.
Pocket Money Training is like brushing
teeth of money management in its totality.
It is a healthy habit that needs to be
cultivated young. Parents, just follow the
cliche’ - catch them young! If you don’t,
the advertisers and merchandisers, credit
card companies or mobile phone
companies, will. Pocket Money Training
involves;
1. Giving pocket money to the child
• in excess of his needs - this may be an
allowance or paid for age-appropriate
work; generally simple chores around
the house.
• in a cycle - daily for younger children,
weekly as they grow, monthly for
older teens.
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