Is recession hitting pocket money too?

Global meltdown has hit almost every household in India, and with increasing education expenses, it is becoming difficult for parents to make their ends meet. To top it up, being a guardian to teenagers prodigal with pocket money is no cushy job either.   

In such trying circumstances, parents are often left in a dilemma as to how much monthly allowance should they give to their children, especially now, when the budget is tight.

"I need sufficient amount of money to take care of my daily expenses. Economic slowdown has had a bearing on my pocket money. Earlier, I used to get Rs1,200 every month, which has now come down to a grand," said Prashad Shah, a computer engineering student. "It's global financial crunch, and we have our own limitations," said his parents in response.

"I, of course, still give them their pocket money because it helps them learn how to budget their expenses. But I have made a slight cut in the amount I gave them earlier. They now spend their money more judiciously," said Sanyukta Patel, a parent residing in Memnagar.   Today, most teenagers are into gadgets and gizmos. The pressure from a demanding teen wanting iPods, designer outfits and accessories can put parents into an economic twister.

It can sometimes be challenging to keep children happy as well as make ends meet, admitted Alpesh Jha, another guardian from Shyamal. "My son is very young so I only give him Rs600. I don't think a college-going teen should require more than that. I also inquire him about where he spends and how much. When he is older, he will eventually learn to value money more," said Jha.

On the other hand, Shilpa Mevada, a student, said, "Although my mom buys everything I need, there is always certain amount of money that one needs for outings with friends. On average one needs at least Rs1,000 a month.

"It is not about how much money is given but how well is that amount used. One can spend Rs5,000 and still fall short of it even before the month ends. I have learnt to manage by budget," asserted Rajeev Shukla, a student. 

Both Ankanksha and Anish receive Rs200 each as their monthly allowance.

"Earlier, we used to give them Rs500 each but it has now been cut down to Rs200. Even commodity prices have risen, be it vegetables or hardware. We cannot afford to give them more than this," said Bhavesh Rathod, a parent from Ghatlodia.  

"I give my school-going children pocket money on weekly basis. It is, I believe, the best way to teach them how to manage their expenses. To save or spend is entirely up to them. If they save, they would be able to buy anything they wanted badly, but they spend it all away, it will only tighten up their belts later on," said Tanvi Shah, a parent from Navrangpura.