KEY POINTS:
Parents who give their children pocket money are doing the right thing, because they are teaching their children about finances, says the Retirement Commissioner.
A survey called Kids and Pocket Money, released today by AMP Financial Services (NZ) has found that 90 per cent of parents say they give their children money, and 56 per cent give their children regular pocket money.
The Retirement Commissioner, Diana Crossan, said parents who were giving their children pocket money were on the right track.
"One of the best ways to teach kids valuable lessons about money is to give them hands-on experience of managing real money of their own. And the best way to do this is by teaching them to manage their pocket money."
It was great that parents who gave their children regular pocket money expected their children to save some of it.
"It's never too young to start the savings habit," said Crossan.
There were lots of ways of making saving fun for children of all ages, like encouraging children to save for things they want, she said.
Pocket money was a great way to educate children to become "financially literate to make informed decisions about their finances", Crossan said.
- NZPA
