Living within one's means a sign of growing maturity

Taupo Times, Volume 23, Issue 55, 11 July 1974, Page 5

Living within one's means a sign of growing maturity

One of the topics often discussed by parents concerns children's allowances. Most agree it is good for a child to receive a certain amount of pocket money. In this way they learn the value of money, they get practice at planning, budgeting and saving for something they want or some present they wish to give. The principle is clear enough; the practice presents problems. It is not easy for parents to hand over hard-to-come-by money knowing it is likely to be squandered on some useless purchase. But if the child is going to learn how to handle money he has to be left to choose how he spends it. Naturally, he will make a few mistakes. He \yill possibly take some time to , learn from them. But learn he will, and it is better for him to make mistakes now with small amounts than later on when he has more money at his disposal. If he is going to learn from mistakes, of course he has to be left to suffer the consequences of whatever choice he makes. When Tommy gets his pocket money on Sunday night and has it spent on Monday night he has to be allowed to experience what it is like to be penniless for six days. He won't like it and probably next week he will manage to eke out his allowance until Tuesday or Wednesday. If he splurges his payroll on a useless toy and noone buys him another to make up for his disappointment, you can be sure that next time he buys he will be more selective. Of course this lesson is much harder on parents than it is on their offspring. There is a constant temptation to rescue the "big spender" by supplementing his income. That is what we all tend to do. The trouble is junior can conclude not that we are most thoughtful and generous, but that if he splashes his payroll there will always be someone handy to help out. That is not a good lesson for him to learn. Parents who tend to weaken can always compromise. They can give a loan to the financially embarrassed youngster, a loan to be paid back in small amounts from future allowances until the debt is paid off, or more likely forgotten. You may remember that delightful compromise in the hook "Cheaper by the Dozen". The father of the family wanted a fence painted.and called for tenders among his children. One little girl underbid

her brothers and sisters and got the job. She got more than she bargained for and was soon heartily sick of painting. But her father was adamant. She, and the family, had to learn that a contract was a contract. There is nothing in the contract, of course, to prevent the employer giving a bonus. So when the job was finally completed the weary youngster received from her father not only the agreed payment but also a spanking new bicycle on which she had set her heart. One of the best ways of teaching children how to handle money is to let them see their parents manage. If they see how mummy puts aside so much for necessary expenses, how she saves for something special, how much is earmarked for comirtg holidays, etc., they will catch on to the idea of budgeting. Saving should be encouraged and incentives should be given: "J'H give you 50 cents for every dollar you have in the bank." A knowledge of family budgeting also helps children appreciate the amount given them as pocket money. This amount will depend on several factors — the family income and expenses, the needs of the children, the common practice among their friends, the number of items to be covered by the allowance. An older child can be given money to cover not only spending money but also bus fares, lunch, clothing accessories, extra ■ school expenses, family presents and charitable

donations. A small child could perhaps handle one or two of these expenses. As the child grows and shows his/her ability to manage money more responsibility can be given. To spend one's own money is a real test of one's concern for others — whether it be in giving presents to the family or gifts to charity. A cheap birthday present bought with one's own money means more than a gift booked up to the family account. , "A donation from one's own savings is a much better expression of charity than an enthusiastic speech about the starving in Ethiopia in a class discpssion. It would be interesting to know how much of the money collected at school

for this or - that charity comes from the children's own money and how much from mum's ever-open piirse. It is fine that children are realising that "something ought to be done for the needy." It is better if they realise they ought to do something — even if it is only a mite they are able to give. Some parents pay their children for the chores they do around the house. Others regard this system as too cumbersome. Chores, they say, are part of family living. Each one ought to contribute to the smooth, easy running of the home. Love and duty, not money, should he the motivation. Whether the above suggestions are of use to a particular family or not,' one thing is certain; practice in the use of money in childhood and youth is an important preparation for life. Learning that money is not easily corrie by, learning to live within one's means — all of these are ways of acquiring maturity and can be used as such. Rev. L. Doyle.