A Simple Trick on How to Save Up A Lot of Money Fast (May 2019).
There is no legal regulation for pocket money. The German Youth Institute recommends parents to leave their children at a certain age the responsibility of smaller amounts of money. From when and in what amount children and young people should get pocket money, read here.
Lesson for life
Whether and when children get pocket money, decide the parents alone. To enable children to learn how to handle money early and to keep their finances under control later in life, experts and youth welfare offices advise guardians to pay pocket money as soon as a child can count, at the latest in elementary school. The pocket money may be independently managed and spent by the offspring. So they learn to appreciate the value of things, to divide the money and to save.$config[ads_text] not found
Pocket money Recommendation
Parents can follow pocket-money recommendations from youth welfare offices or the German Youth Institute. The recommendation is to pay pocket money weekly for children under the age of ten, and for children ten years old, monthly amounts should be left to children.
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- 4 - 5 years: 50 cents weekly
- 6 - 7 years: 1.50 to 2 Euro per week
- 8 - 9 years: 2 to 3 Euro per week
- 10 -11 years: 13 to 16 euros per month
- 12 -13 years: 20 to 22 euros per month
- 14 -15 years: 25 to 30 euros per month
For 16- to 18-year-olds 35 to 70 euros a month are appropriate. But only if the young people are still students or unemployed.
Also, bank counselors often have experience with the income of children and adolescents. Create a checking account for your children and transfer the allowance to the account. Children do not spend the money that fast because they always have to go to the bank first to withdraw money. A checking account is useful from 10 years. Child accounts can not be overdrawn and no credit is guaranteed. Children and adolescents can only withdraw money if they have credit on their account.
The amount of the pocket money depends on the age of the child and the financial possibilities of the family. It is important that parents speak openly about the financial situation of the family.
Rules for pocket money
Set clear rules for pocket money. When is it paid out, what expenses do children have to pay for their pocket money, when is there a pocket money increase? Food and drink, clothing and school supplies should continue to finance adults. Children can buy small items such as sweets, magazines or toys from the amounts paid out. In addition, children should learn to save in order to fulfill greater wishes. Each child should have their own piggy bank.
What parents should consider
Always pay your children the pocket money on time and make the money regardless of the grade or behavior of the children. Children should not perceive the money as a reward or punishment. If the pocket money is spent, you should not finance your children exceptionally. This is the only way for the offspring to learn to handle money and to classify it correctly.
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