Paper Title
Giving Children Pocket Money as a Tool for Understanding Economic Principles in Personal Budget Management and for Reducing Gender Gaps in Financial Matters: Does it Work?

Abstract
The aim of financial education is to prepare young people to make independent and intelligent decisions regarding their financial resources. In the 21st century, the importance of financial knowledge has increased as children have begun engaging in economic market activity earlier and earlier. Giving children pocket money or an allowance is a generally accepted means for parents to introduce their children to concepts of self-management, saving, budgeting and fiscal responsibility. Yet despite the findings of previous research that giving children pocket money constitutes a simple way of preparing them for the future and of turning them into more financially literate adults, most children have never been taught financial literacy. They are given an allowance but have no idea how to manage it. As a result, in the future when they are already adults earning money in the real world they will have difficulty knowing how to budget their income. Furthermore, previous research shows that access to pocket money may lead to negative outcomes and influences, such as tobacco use, unhealthy eating and increased risk of becoming overweight. This research examines whether giving pocket money to 12-16 years old children affects their decision making regarding financial issues, by comparing two groups of children - those that receive pocket money and those that do not. The results suggest that overconsumption of candies and fast food are not affected by pocket money, while friends' influence on economic decisions making is higher for those that receive pocket money. On the other hand, if children think that their parents make good financial decisions then the children will also make good financial decisions. In addition, girls - more than boys – consider themselves as being influenced by their friends and as overconsuming. Keywords - Pocket Money; Financial Education; Children; Economic Decision Making;