ramanan50

Pocket Money Alarming Trends IndiaTakes Action

In Education, Parenting on August 31, 2013 at 13:04

Pocket Money is the money given to children by the parents to spend.

Pocket Money in India

Pocket Money In India, A Study.

This is addition to what is being provided at Home by way of Food, Shelter Clothing, Study expenses and in fact covers everything.

This concept  is a new one, since about fifteen years,;even then, it was not followed as it is being done now.

We were provided  every thing by the parents at Home(about 50 years back) and I did not even know what to ask.

I used accept what was given by my father.

Even School textbooks were not asked for.

If I needed something, which was rare, at times I used to ask my mother and what I wanted was provided, but never Money.

Today, we find Pocket Money is being demanded as a matter of Right by the children and parents also consider this as a part of a Child growing into an adult!

It sounds funny.

Why does a child require Money and why do parents encourage it?

One point is that the peer Pressure exerted on the Parents by the other parents  on the one hand  and , on the other,the pressure exerted by the child’s friends.

Many parents resort to this practice to show their status,also to assuage their guilt feeling of not being with the child  as much as they would like because of the fact that both Husband and wife are employed.

They think they are compensating this by giving money to children.

At a relatively young age, say up to 10 years, if you bring up the child properly. the child would not ask for Pocket Money and what it needs is the fact that the Father/Mother personally  bought something for him

Once you allow the child the taste of money, it never leaves.

The child develops a taste for things which it can not afford and assumes that the Money is there merely for the asking.

When you have money, one tends to spend on things one does not need, this applies more to Adults,look at your credit card purchase-s you would have bought things which you would otherwise have not bought if you hard currency ;such being the case, imagine a child!

When the child has  more money it tends to develop bad habits like Smoking< Drinking and begin to use drugs.

As usual parents are the last to know of this.

Then things had gone beyond control.

Another serious implication is that when the child does not get the money from you it starts stealing , first from Home ,then later from other people.

I am not sounding an undue Alarm.

Survey at .

http://www.bemoneyaware.com/survey.php

This I have observed in quite a number of cases.

The issue has assumed such serious proportions that the Government of India has come out with a Scheme to regulate this and create an awareness among the students and the parents.

I am providing some thoughts from another source;

Pocket money as the name suggests is money given to children to take care of petty expenses. This amount of money can be given by parents’ everyday, every week or every month or even on adhoc basis, as and when the child requires it. As long as the child has the freedom to spend the money, it will be deemed as pocket money.

Parents extensively differ in their perspectives of whether or not to give pocket money to children. Some parents believe that pocket money should not be given since

*
That will make the child feel that ‘parents money is not his/her money’,
*
‘It could lead to fights between children’,
*
‘Unhealthy competition amongst children on the amount of pocket money they get’
*
Loss of control on where children spend the money’

However, giving pocket money to children has several advantages:

*
Children feel a sense of independence and responsibility towards spending the money the right way. They learn & understand the value of money. They also learn to understand that amount of money is limited and they need to always choose between their various desires to ensure correct use of their pocket money.
*
Children get into the habit of planned income and expenditure. They also learn about saving & budgeting. For eg: if they want to buy a present for their mother’s birthday, they will need to put aside some amount of money every month to collect the commensurate amount and buy the gift.
*
Giving pocket money to children also makes them feel an important part of the family since they know that they get a part of the family’s monthly income.
Some parents even believe in their children earning pocket money. What does that mean? It means that parents can often inculcate values/ beliefs/ actions in their children by rewarding them for it in the form of pocket money. In such cases, parents divide the pocket money amount in two parts:

*
One that is given on a timely basis.
*
Second that is earned against some house jobs. For eg: every Sunday, you could start giving a fixed sum of money to your son if he helps his father in cleaning the car. Or if your daughter helps around in dusting the house. This will in a way also inculcate the habit of weekly cleanliness in them since childhood. Similarly, if you strongly wish to inculcate the value of ‘ helping others’ in your children, you could promise them an extra sum of money during summer vacations if they help your maid’s child learn the basics of math.

Pocket Money , Indian Government Initiative.

Pocket Money – Financial Education in Schools
NISM has developed a program to impart basic financial skills to school students (Classes VIII upwards). Named as ‘Pocket Money’, this program has been developed as an eight (90 minute) session course.This is a joint initiative being conducted by SEBI and NISM. We have done a pilot initiative covering 30 schools and 4000 students. We will soon be launching the program in various parts of the country.

For more information about this program please go through this short presentation:

Download here for the programme.

The Government is tying up with schools and educate children , parents and the Teachers on this issue.

http://www.nism.ac.in/index.php?option=com_content&view=article&id=262&Itemid=233

http://www.indiachildren.com/growing/10to15y/pocketmoney.htm

Studies On Pocket Money in India.

A 2011 study by ASSOCHAM on “Current Pocket Money Trends in Urban India” spoke to over 3,000 respondents in the 12-20 years age group in five metros, including Chennai (which was at the bottom of the list in terms of pocket money – the maximum was Rs.5,000). Shockingly, it revealed that children were getting pocket money upwards of Rs.12,000 in India, many times more than the few thousands that children were used to getting just six years ago. Apparently, big budget items that kids were going in for was gadgets (55 per cent), 25 per cent spent money on movies and malls, and about 20 per cent on eating out.

“Food is on top of the list – for all children, irrespective of their socio economic strata. If they have money, they buy food. Unfortunately, most of it is junk food and fizzy drinks,” Dr. Kumarababu explains.

Coupled with a sedentary lifestyle, this leads to obesity and a whole string of metabolic disorders that are best prevented at a young age, doctors say. The next big spending is on gadgets and on video games CDs and DVDs, all of which further encourage a sedentary life.

http://www.thehindu.com/news/cities/chennai/pocket-money-may-encourage-deviant-behaviour-in-kids/article2876324.ece

My suggestion is not to give Pocket Money right from the early childhood and provide children what they need by yourself.

In case you can not avoid this , make sure the child keeps an account and shows it to you daily.

Schools may encourage children to save and set Marks for Saving for A  ‘Pass’/Rank.

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  1. Children should provide things according to their needs by parents. You shared good information on study on pocket money in India. Government is putting good effort.

    Like

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