Advantages and disadvantages of budget money
If children and young people have to allocate their own money and buy certain important things themselves, this immensely strengthens the Understanding money and independence. But budget money also entails risks and should not be left unprepared to children.
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The benefits are obvious:
- Children learn the difference between necessary investments and “luxury goods”
- less stress for parents when shopping for school supplies or clothes
- Managing money is learned, for example if a particular brand's jacket is more expensive, clothing money must be saved
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But there are also drawbacks:
- possible excessive demands on the children
- Budget money is not spent on planned things
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Preparation is everything
If you feel your child is ready to manage their own budget for certain areas, start small. As a rule, at the age of ten, children are already quite good at estimating when they are spending their money on what.
Talk to your child, set budgets and start with an area, such as school supplies, such as pens and notebooks. If your child is doing well, you can set budgets for clothes, shoes, or body care.
Should something go wrong and the money for a new winter jacket has been spent at the cinema, don't cut back on your child's pocket money. Talk about the reasons and try to find out together how things can be done better.
Budget money is a great way for children to learn how to handle money independently. With the Bling card and app Do you always keep an eye on pocket money and budget money. Your child knows exactly how much money is still available and receives helpful savings tips.
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