• March 6, 2023

Pocket money for children

Pocket money for children

The euro crisis has shown that many people do not understand how our monetary system works. The fact that new money is created only by new debts, that thus on the one hand only ever more assets can be accumulated, if on the other hand someone in the same measure indebted, is for most incomprehensible.
And the policy strengthens humans in its faith. The debt countries are to lower obligingly their expenditures drastically and to reduce so their debts, reads the published slogan. But if everyone were to actually pay off their debts and thus be debt-free, growth would no longer be possible. And there the cat bites itself into the tail, because growth is apart from the debt reduction the other holy cow of the policy.

Henry Ford is credited with the following quote: “The moment people see through the money and banking system, this system collapses and we have civil war.” And there he is probably unfortunately right.

Children need to learn how to handle money

That’s why money should actually be an important topic even in school. But there is no question of this, especially in Germany. Finances are a closed book for many people in this country. All the more important that already the smallest ones deal with it and learn first of all how to handle money. The pocket money offers itself for it excellently.

According to a recommendation of the youth welfare offices, children should receive the following pocket money depending on their age:

Age of the child
Pocket money
4 – 5 years 50 cents a week
6 – 7 years 1,50 to 2 Euro weekly
8 – 9 years 2 to 3 euros a week
10 -11 years 13 to 16 euros per month
12 -13 years 20 to 22 euros per month
14 -15 years 25 to 30 euros per month
16 -17 years 35 to 45 euros per month
18 years 70 euros per month

Children up to approx. 9 years should get their pocket money paid weekly, because they have difficulty keeping track of longer periods of time. From 10 years they can then get the money completely for 4 weeks in advance and plan their spending accordingly.

Rules important

It is important that from the beginning certain rules are strictly observed. This is the only way to learn.

  • The money is always paid on time, it may be spent freely, it is not increased in between, there is no credit or advance.
  • The children are allowed to do what they want with the money. Daily necessities or school supplies do not need to be purchased from pocket money.
  • For larger purchases, saving is important, for older children also the search for another source of income, such as bspw. a vacation activity.

In later years, it may also be possible to set up a current account for children or young adults. Young people on a credit basis can be interesting. So they learn early to deal with banks, payment transactions and possibly. Interest. All this will positively promote the understanding and handling of money.

Many do not get pocket money

Unfortunately, the economic situation in many families in Germany is so bad that they cannot pay their children any pocket money at all. This means that these children are doubly punished. You do not have money for yourself and so you cannot learn how to handle it.