When children start going to schools, a new personality enters the lives of parents. Children between the age group of five and eight years are interested in taking a lot of initiatives. S/he is interested in accomplishments and wants to do things well. A school-age child likes a feeling of responsibility-of doing something to help make the home operate smoothly. Parents may have a difficult time finding something for a child to do. That’s when they need to think about ways to let the child experience their freedom through baby steps like introducing Pocket Money for them. Similarly they may not be okay with the idea of giving Pocket Money or any other allowances to children.
Giving a monthly allowance or a Pocket Money to the child is one of the most worthwhile educational experiences that parents can provide. It presents a natural opportunity to learn counting and arithmetic calculations. It offers a chance to begin to develop a sense of logic. The child may make mistakes or buy unwisely at first. S/he may rush to spend all of his/her money the minute s/he gets it, forgetting that it will be several days before s/he gets any more. From such haste s/he may learn to be selective in his/her purchases and prudent in his/her spending, because Pocket Money also involves the necessity for choices. 
Parental guidance may help a child learn that s/he can have two Balloons this week, or s/he can save his/her Pocket Money for two weeks and buy a toy or a book. But s/he cannot have both the balloons and the toy/book. This is how you can guide them to use their Pocket Money wisely and save a few bucks for the future:
3. Shortly s/he will become ready to take on the additional responsibility of managing all the money s/he will need for school expenses-bus fare, school supplies or canteen money. 
Once you decide to give Pocket Money to the child do not try to control your child’s buying. Let him/her make mistakes for in this way s/he learns. Do not insist that a young child save something every month out of his/her Pocket Money. A savings plan will appeal to them in due course of time when they want buy something special. Also, most important thing, once you start the Pocket Money do not stop it or delay it on silly/irrelevant grounds such as disobedience, over spending on junk food or poor school results. Pocket Money should definitely not be used as a bargaining tool to guarantee a child’s good behaviour nor should it become a bribe.
Good insights
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