There are some parents that decide that they would like to give their children a start in life by giving them some money each month. However, some parents choose not to do this. If you are considering whether to do this, it is worth thinking about what the pros and cons are and then you can decide whether it is the right thing for you to do.
Gives them a Start in life
Many parents want to help their children to get a good start in life. This could be done in lots of different ways but some do it by putting some money aside for them. They want to give them something, perhaps when they turn eighteen, which will help them out. This could be towards paying for university, for a deposit on a home or towards a car and driving lessons. There are a lot of potential expenses that young adults have and so it is very useful for them to have some help at this age, even if it is just a small amount of money.
Stops them Seeing the Need to Save Themselves
Some may argue though, that if you give young people a lump sum of money, they will not see the need to save money for themselves. They might feel that will not need to bother putting the effort into saving up for things if you are going to pay for things, for you. However, this may very much depend on the child as well as the way that you have raised them. If they have already been shown how to save up money through childhood, then this is less likely to be a problem for them.
They may Spend it Recklessly
Sometimes when people come into money they will spend it without really thinking about whether they are being sensible with their purchases. It can be surprisingly easy to spend money quickly on all sorts of small things which really add up. Buying an expensive car, some designer clothes, some tech like phones and contracts to go with them, large television and computer then perhaps some things for the home and a lot of money can disappear very quickly. Some parents prefer to wait to give their children money when they are a lot older so that they can trust them not to spend it like this or perhaps advise them on how to spend it or even buy them things rather than giving them the money.
Might Leave Parents Short of Money
Putting some money away each month could possibly mean that parents are short of money themselves. This can be the case with some parents that will struggle to put money into an account for their children as well as pay for everything that is needed. The more children that they have, the more difficult it is likely to be. It may also be the case that it is more affordable at certain times than others. Of course, it could be possible for them to only pay money in when they can afford it.
So, you can see that it is not a very straightforward decision. It is something that you will need to think about. You will want to do the same for each child that you have and so this will have an impact on whether it is something that you can afford. You might also want to think about whether it is something that you want to do at all or whether you think that it is better for them to learn to save money for themselves, rather than you doing it for them. You may also want to tell them where to spend the money so that there is less risk that they will spend it on things that will not benefit their future.