Parents in the Czech Republic give their children an average of CZK 300 ($14) monthly as pocket money, according to a survey by Raiffeisenbank. More than half of the surveyed parents give pocket money to their children, while over one-third also set up savings accounts for their kids. The most common amount given is CZK 300, which is CZK 50 more than the average amount given two years ago, as revealed by a survey by the Czech Banking Association.
A Tool for Education
Psychologists recommend that parents start giving pocket money to their children as a tool for education and to teach them how to manage their finances early on. The amount given should be consistent, and parents should begin with small amounts to instill the principle of “what goes around comes around” in their children.
However, psychologists also emphasize that pocket money should not be given as payment for household chores. Instead, parents should encourage children to take part in chores as a regular part of their responsibilities as a member of the family.
Combination with Part-Time Jobs
Parents should also teach their children about the concept of social exchange, where one person gives, and the other reciprocates, according to Jeroným Klimeš, a psychologist. He also suggests that preschool and primary school children should be taught financial limits. Wealthy parents often have to artificially create these limits and teach their children skills that come naturally to children from lower-income families.
Giving pocket money can be a tool for parents to teach their children about financial responsibility. However, it is essential to remember that pocket money should not be children’s only source of income. Many parents also encourage their children to get part-time jobs, which can teach them valuable life skills and help them understand the value of money.
According to Creditas, a bank in the Czech Republic, children and teenagers most commonly spend their pocket money on food and drinks, with 39% of respondents indicating this as their top expense. Older girls spend their money on clothing (27%), while boys prefer mobile games or game consoles (10%).
Parents need to communicate with their children about what they are spending their pocket money on. According to Raiffeisenbank, two-thirds of parents talk to their children about their spending habits, while one-fifth ignore what their children buy with their pocket money.