pocket money
Also called: uang saku anak
Small amounts of money given regularly to a child for their personal needs.
What it means
Pocket money, or a child's allowance, is routine funds given by parents for the child's needs at school or day to day. Its purpose is to train the child to manage money in small amounts. The amount should ideally be agreed upon and consistent.
Why it matters for families
Pocket money is a child's first financial education tool. If it is given without limits or guidance, the child will struggle to learn to save and to tell needs from wants. For parents, this item needs to be in the budget so it does not disrupt instalments and savings.
Example
For example, a child is given Rp10 thousand in pocket money per school day and encouraged to set some aside in a piggy bank. Each month they count together how much has been collected. These figures are only a family illustration.
Common misunderstanding
Pocket money is often seen as just a small formality. The correction: without agreement on the amount and purpose, pocket money can balloon and fail to teach anything.