POLOKWANE – Clinical psychologist Maphuti Malebana emphasises that giving children pocket money helps them learn to make choices about spending and saving, laying a foundation for financial responsibility later in life.

“Giving children money to spend sets the stage for financial responsibility, but it must be accompanied by financial education. Without guidance, kids may overspend or buy unnecessary items. It’s the parent’s responsibility to provide the correct advice before giving them money,” says Malebana.

She acknowledges that some parents view pocket money as unnecessary and believe it encourages frivolous spending.

“These parents think children should only receive money when it’s necessary, such as for school supplies or extracurricular activities,” she added.

Malebana explains that pocket money has many benefits, including teaching financial planning, mathematical skills, saving for significant purchases, budgeting, independence, distinguishing between needs and wants, understanding the value of money, evaluating options and consequences, and earning money through chores.

“When a child receives a fixed amount regularly, they learn to allocate their money wisely to cover various expenses. Allow them to decide how to divide their pocket money among different categories, such as saving, immediate spending, and setting aside money for future goals. This process helps them develop essential budgeting skills,” she concluded.