It’s inevitable that kids grow up, and pretty soon, they’re going to have to take up new skills as well as responsibilities. Part of this is learning about the perception of money. This usually begins when parents start to decide how much child’s allowance to give.
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?
We look into how much allowance parents in the little red dot are giving their children nowadays. And if you haven’t yet, we will also talk about what you should consider when starting a school allowance for your kiddo.
Image source: iStock
What To Consider When You Give Your Child’s Allowance
There are many aspects in life that are better for kids to pick up on earlier in life, such as pocket money. Now, we’re not telling you to immediately jumpstart their financial independence but 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:
- 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.
- 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?
- 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 ways to spend wisely or the value of money.
- 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.
- When you want to give them a little extra
There can be instances where you want to give your child more than you agreed. 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.
Image source: iStock
How Much Child’s Allowance By Age According To Singaporean Parents?
Parents were asked whether they would be increasing or decreasing their little one’s allowance. Under a post by the Facebook group POSB Parents, parents share how much pocket money they would give their school-going kids.
Primary 1: $2
Image source: Screengrab from Facebook
Many parents seem to agree on $2 dollars for their Primary 1 kiddos. In fact, the amount was mentioned the most often as other parents also shared how they continue to give $2 to their children.
Primary 2: $2 – $3
Image source: Screengrab from Facebook
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 child’s allowance each year. Some parents would much rather stick to $2 until they reach “high primary”.
Image source: Screengrab from Facebook
Meanwhile, others might consider adding a bit to the amount by making it $2.50 instead.
Primary 4: $2.5 – $4
While there were those who shared that they only give $2.5 for their Primary 4 child, another said that she has raised their child’s allowance to $4.
Image source: Screengrab from Facebook
One mum even said that she plans to add $1 to her P4 kid as she jokes they are “getting more active and more hungry”.
Primary 5 – 6: $4 – $5
Image source: Screengrab from Facebook
Image source: Screengrab from Facebook
As for Primary 5 to 6 students, a parent said that they used to give $4 to $4.50 to their child during this time. There were a few parents that agreed on $5 for this age group as “they are getting clever of spending and saving”.
Secondary 1: $5 – $6
Image source: Screengrab from Facebook
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 have decided to hand their kids $6 for their pocket money.
Average age when parents give their child’s allowance in Singapore
While there is no set age for parents to give money to their children in Singapore, it is important for parents to consider their child’s financial literacy and maturity before making any decisions.
It is also beneficial for parents to have open and honest communication with their children about money and to set financial goals and expectations at an early age.
Ultimately, every family’s situation is unique and it is up to the parents to decide when is the appropriate time to start giving their child money and how much to give.
With the right guidance and support, parents can instil responsible money management skills in their children and set them up for financial success in the future.
With reports from Nalika Unantenne.
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