JurnalPost.com - For many parents, pocket money may simply be seen as a daily allowance given to a child before school. This money is typically used for snacks, drinks, or small necessities while at school. However, behind this simple habit lies an opportunity to teach essential skills that will benefit a child throughout their life.
When a child chooses to buy a snack at the canteen, sets aside money for a book, or delays the urge to buy a new toy, they are learning to make decisions.
These decisions might seem trivial to adults. However, for an elementary school student, this experience is part of the process of understanding the value of money, setting priorities, controlling impulses, and considering the consequences of every choice.
Unfortunately, financial education for children is often still understood only as the habit of saving and avoiding wasteful behavior.
Children are told to save their money, but they are not always invited to understand the reasons why that money needs to be set aside. They are also frequently forbidden from buying things without being given the opportunity to weigh their own needs and desires.
In reality, financial literacy cannot be built through advice alone.
Children need direct experience to experiment, make choices, face consequences, and learn to correct less-than-ideal decisions.
Therefore, pocket money should not be viewed merely as a transaction tool, but as a learning space to develop critical thinking and responsibility.
Children Recognize Money, but May Not Know How to Plan
Introduction to money actually begins in early childhood. They start to understand that money is used to buy things and that every item has a different price.
However, the ability to recognize money is not always followed by the skills to manage it.
Research by Petra Omega, Risti Alfiani, and Cucun Sutinah published in the Current Issues on Elementary Education Journal in 2024 provides an overview of the state of financial literacy among elementary school students.
The descriptive study, which involved 30 sixth-grade students at a public elementary school in Bandung, showed an average financial literacy score of 56 percent, which the researchers categorized as low.
On the indicator of the ability to distinguish between needs and wants, student achievement reached 93 percent. However, on the indicator of awareness regarding the importance of financial planning, the reported achievement was only 4 percent.
This discrepancy highlights a gap between conceptual understanding and the ability to apply it in daily life.
Children may know that food is a need, while certain toys are a want. However, that knowledge does not necessarily mean they are capable of creating a proper plan for using their money.
Nevertheless, the results of this study cannot be generalized to represent all elementary school students in Indonesia because it only involved 30 respondents from one school.
The findings still serve as a reflection that financial education needs to pay greater attention to planning skills, not just conceptual introduction.
Another study conducted by Diana Lutfiana Ulfa and Khabibur Rohman regarding the profile of pocket money and spending patterns of elementary/Islamic elementary school students in several regions of southern East Java also provides an interesting picture.
The study, which involved 440 students, found an average pocket money amount of IDR 5,700 per day.
This money is used for various purposes, ranging from buying food and drinks, toys, paying class fees, to being set aside for savings or brought back home.
This figure is not an ideal benchmark for all Indonesian children. The value only reflects the characteristics of the respondents and the region where the research was conducted.
However, the study shows that pocket money has diverse functions in a child's life.
Its management is not only related to consumption habits but also to social needs, school activities, and opportunities to learn how to set priorities.
Teaching Financial Literacy According to a Child's Age
Financial literacy learning for elementary school children needs to be adjusted to their developmental stages and cognitive abilities.
Children aged 6 to 12 have different learning needs. Lower-grade students generally find it easier to understand concepts through concrete examples and simple activities, while upper-grade students can begin to be involved in more complex planning and decision-making.
At the age of about 6–8, financial introduction can start with activities such as recognizing currency denominations, calculating item prices, understanding change, and distinguishing between needs and wants.
Teachers can use buying and selling games with play money to introduce these concepts.
For example, a child is given IDR 10,000 in play money and asked to choose several items with different prices. From this activity, they can learn to calculate the total cost while understanding that the amount of money available is limited.
Meanwhile, at the age of about 9–12, learning can be developed through creating shopping lists, price comparisons, setting savings targets, and planning the use of pocket money.
Children can also be asked to explain the reasons why they chose one item over another.
These age divisions are not absolute developmental boundaries. Each child's ability should still be viewed based on their experience, needs, and learning environment.
In the study of cognitive development, Jean Piaget's thinking helps explain the importance of concrete experiences for elementary school-aged children.
At this stage, children are generally increasingly able to use logical reasoning when faced with real situations that can be observed.
Therefore, concepts such as budgets, priorities, and limited resources will be easier to understand when linked to daily experiences rather than just explained through definitions.
Pocket Money as a Critical Thinking Exercise
Imagine a child receives IDR 10,000 in pocket money.
When at school, they want to buy food for IDR 6,000 and a drink for IDR 4,000. At the same time, the child is saving up to buy a drawing book.
If all the money is used to buy food and drinks, there will be nothing left to set aside for their goal.
In such a situation, parents or teachers could simply dictate which items should be bought.
However, the learning experience becomes more meaningful if the child is given the opportunity to consider their own choices.
The child can be encouraged to think through several questions.
Are the food and drink both necessary? Can they bring a water bottle from home? How much money can still be saved without neglecting the need to eat?
These questions help the child understand that every decision has consequences.
They start to learn to compare options, consider needs, and determine the action that best fits the situation they are facing.
This is where pocket money can become a tool to train critical thinking skills.
The child is not merely following instructions to save, but understanding the reasons why a decision needs to be made.
In school learning, teachers can develop similar activities through simple market simulations.
Students are given a certain amount of play money and a list of items with different prices. They are then asked to create a shopping plan, calculate total expenses, and explain the reasons for their item selection.
These activities can be integrated into various subjects.
In Mathematics, students learn to calculate prices, addition, subtraction, and change.
In Natural and Social Sciences (IPAS), students can discuss the relationship between consumption habits, resource use, and their impact on the environment.
Meanwhile, in Pancasila Education, these activities can be used to instill values of honesty, responsibility, and care for others.
Through this approach, financial literacy does not stand as a separate body of knowledge, but becomes part of a learning experience that is close to the students' lives.
Dealing with Peer and Environmental Influence
A child's decision in using money is not always based on personal needs.
Peer environments can also influence buying habits.
Children may be interested in owning certain toys because they see their friends using the same items. They may also be driven to buy food or drinks that are currently popular, even if they previously had no desire for them.
This condition is a normal part of the social process, but it still requires guidance.
Parents and teachers can help children understand that not every item owned by others needs to be purchased.
Children also need to learn that low prices or discounts do not always make a purchase the right decision.
For example, an item sold at a large discount is not necessarily needed.
If a child buys it just because they are tempted by the discount, the expenditure can still be wasteful.
Through simple discussions, children can be trained to question the information they receive before making a decision.
This ability is important because financial literacy is not only related to the skill of counting money, but also the ability to evaluate information and control consumption impulses.
By getting children into the habit of thinking before buying, financial education simultaneously helps build independence in making choices.
The Role of Family and School in Shaping Financial Habits
Financial education for children cannot be entirely burdened on the school.
The family is the first environment where children learn about money, spending habits, and how adults set priorities.
Children learn not only through explanations but also by observing the behavior of those around them.
When parents compare prices before buying items, create a list of needs, or delay non-urgent purchases, children gain concrete examples of financial management.
Research by Hermansyah and his colleagues published in the Kasetsart Journal of Social Sciences in 2024 also discusses the implementation of financial literacy in elementary education in Indonesia.
The study reinforces the importance of making financial education a part of the school's focus, not just the family's responsibility.
In daily life, parents can involve children in simple activities.
For example, when buying fruit, the child is invited to compare prices and make a choice according to the amount of money available.
Parents can also get children into the habit of making a list of items they want to buy, then discussing which ones need to be prioritized.
This approach does not have to be done through long lectures.
Simple questions like "Why did you choose this item?" or "Does this item have to be bought now?" can be the start of a conversation that helps the child understand the decision-making process.
At school, teachers can reinforce this experience through games, pocket money management projects, and discussions about daily needs.
What is equally important is giving children the opportunity to learn from mistakes.
When pocket money runs out faster than planned, the child does not always need to be scolded.
Parents can invite them to review their expenses, understand the causes, and create a better plan.
The goal is not to make the child afraid to use money, but to help them develop responsibility for the decisions they have made.
Financial Wisdom Is Not Measured by the Amount of Savings
In teaching financial literacy, differences in family economic conditions also need to be considered.
Not all children receive the same amount of pocket money.
Some receive money daily, some receive weekly allowances, while other children more often bring packed lunches from home or do not have a routine allowance.
These differences should not be the basis for judging a child's level of financial intelligence.
A child who has a large amount of savings is not necessarily wiser in making decisions than a child who has only a little money.
Conversely, a child who does not have savings does not mean they are incapable of understanding the concept of financial management.
Financial ability needs to be assessed through the thinking process and behavior shown by the child.
For example, can the child distinguish between needs and wants, explain the reasons for a purchase, calculate simple expenses, and understand the consequences of the decisions made?
This approach is more relevant for educational purposes than simply comparing the amount of savings between students.
Financial literacy should also not be a means to embarrass children from families with limited economic means.
Instead, financial education needs to provide equal learning opportunities to all children, regardless of the amount of pocket money they have.
Forming Children Who Are Capable of Making Decisions
Financial literacy education from elementary school ultimately does not aim to make children merely good at saving or cautious when shopping.
The more fundamental goal is to form the ability to think before making a decision.
Through managing pocket money, children learn to understand limitations, set priorities, consider options, and accept the consequences of their actions.
These skills are not only useful when a child uses money.
In the broader scope of life, the ability to set priorities and consider consequences is also needed when they face academic, social, and various personal decisions.
Therefore, families and schools need to work together to create learning experiences that provide space for children to think independently.
Pocket money may seem small in value to adults. However, for a child, every decision to use or set aside money can be a very meaningful learning experience.
Children need to be given the opportunity to try, consider options, and learn from experience without always being directed unilaterally.
We do not just need children who are diligent at saving, but also children who are capable of understanding needs, controlling desires, considering alternatives, and taking responsibility for the decisions they make.
Because financial proficiency does not begin when someone has a large income.
Such proficiency can be built from a young age, when children learn to ask before buying, think before choosing, and understand that every decision has consequences.
Reference List
Hermansyah, A. K., Wangid, M. N., Kusmaryani, R. E., Mustadi, A., & Zubaidah, E. (2024). Implementation of financial literacy in elementary school: Study in Indonesia. Kasetsart Journal of Social Sciences. DOI: 10.34044/j.kjss.2024.45.3.18.
Omega, P., Alfiani, R., & Sutinah, C. (2024). Financial literacy of elementary school students: Understanding the concept of money and financial planning. Current Issues on Elementary Education Journal. DOI: 10.17509/ciee.v3i2.76532.
Ulfa, D. L., & Rohman, K. Profile of Pocket Money and Spending Patterns of Elementary School Students. Publication reference: Jurnal JPPI, ejournal.intelektualedu.com.
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