Time the Pocket Money

The main source of money for your child is the pocket money that you provide. It is important to fix a particular day in a week or a date in a month when you give her pocket money.

For example, if it is weekly pocket money, you need to fix either Sunday or Monday as the day or if it is monthly pocket money you can fix the first of every month. Explain that the money is for the entire week or entire month and she is not entitled to receive extra money in case she falls short.

If she is left with absolutely no cash, then you can make her earn her money by way of asking her to do some work. For example you can ask her to clean her room and give her some money for the work done.

Teach Him to Save

When your kid is between 10-15 years of age, your kid is likely to spend more than the pocket money he receives. So it is very important to teach your child to value the money he has and also to keep a track of his expenses.

For instance, if he demands a Play station worth Rs. 1200, which is way beyond his pocket money, you can teach him to save money using the EMI concept, suggests Ameet Patel, a chartered accountant.