It's inevitable that kids grow up and eventually pick up new skills, as well as responsibilities. Part of this includes learning about the management of money.
This usually begins when parents start to decide how much allowance to give their child.
Pocket money is a great starting point for children to learn the responsibility of handling money. But how much allowance are Singaporean parents giving their school-going kids and should the amount change by age?
What to consider when you give your child an allowance
There are many things in life that are better for kids to pick up earlier on, such as managing their pocket money.
Now, we're not telling to you immediately jumpstart their financial independence. Instead, gradually teach them how they can manage their school allowance.
But before you can hand them a dollar or two, here are a few things you should keep in mind:
1. Your financial situation at home
You should consider certain factors such as your family's current financial circumstances before setting an allowance for your child.
2. Your child's age
Is your child old enough to handle money on their own? Are they already capable of learning how to manage their allowance?
3. Your reason for giving them an allowance
Why do you think it's time to give your kiddo pocket money? Break down what financial responsibility skill you want them to learn from this, such as spending wisely or knowing the value of money.
4. Stick to an agreed amount
Once you decide on an amount, make sure not to hand out extra money so they can learn to budget themselves throughout the week. If they're old enough, you can also start discussing with them how much allowance they should get.
5. When you want to give them a little extra
There can be instances where you want to give your child more than you agreed on. In this case, discuss whether this will count as an advance on their next allowance or if this is a reward for something they did.
Singaporean parents share how much allowance they're giving their kids this year
With a brand new year, parents were asked whether they will be increasing or decreasing their little one's allowance.
Under a post in the Facebook group POSB Parents, parents shared how much pocket money they give their school-going kids per day.
Primary 1: $2
Many parents seemed to agree on $2 for their Primary 1 kiddos. In fact, the amount was mentioned the most often among other age groups as well, with other parents sharing how they continue to give $2 to their child even as they grow older.
Primary 2: $2 - $3
As for Primary 2 students, a mum shares how she hands over $3 to her child for school. While some parents choose to increase their child's pocket money, it is still up to you whether you would prefer to stick to the amount you agreed on in their previous year.
Primary 3: $2 - $3
Once again, it is completely your decision whether you want to change your kid's allowance each year. For some parents, they would much rather stick to $2 until their kids reach upper primary.
Meanwhile, others might consider adding a bit to the amount and giving their kids $2.50 instead.
Primary 4: $2.5 - $4
While there were those that shared they only give $2.50 for their Primary 4 child, another said that she has raised her child's allowance to $4.
One mum even said that she plans to add $1 for her Primary 4 kid as she jokes they are "getting more active and more hungry".
Primary 5-6: $4 - $5
As for Primary 5 to 6 students, one parent said that they used to give $4 to $4.50 to their child at this age. There were a few parents that agreed on $5 for this age group as they have more knowledge of spending and saving.
Secondary 1: $5 - $6
A parent admits that secondary school food is "more expensive" which is why they've decided to raise their child's allowance from $4 to $5.
There are also those who say they give their Secondary 1 kids $6 for their pocket money.
This article was first published in theAsianparent.