Microeconomic Essay Example | Topics and Well Written Essays - 1500 words

Microeconomic - Essay Example This academic paper will be focused on the logic behind warranties as signal of quality as well as what limits the attractiveness of warranties as signals for high-quality firms. Grossman (1981) argued that indicating enhanced efficient functioning of a perfectly competitive market in a situation where there is information deficiency. Warranties offered by most production companies are considered common types of signal sent by high-quality production companies. This is at reducing consumer’s quality doubt and information gaps in the product’s quality. Quality has been used to refer to observable and unobserved product characteristics in terms of product performance and durability. The common assumption is that firms producing low-quality products find it very expensive to offer a warranty. This product assumption makes offering of product warranty a credible signal of unobservable product performance and durability among many other features. In the production industry, product failures are highly linked with product quality and workmanship hence the cost of offering the warrant will be higher for poor quality products. As a result of innovation and technological advancements, the information asymmetry between consumer and manufacturer is great. This comes about due to an increase product modifications and releases on an annual basis. In the situation of new products, consumers have very little information on product information and quality due to the unavailability of past experiences and third party reviews. The injection of costly warranties in asymmetric information implies that warranties serve as pertinent projections of product quality in the production sector. The primary objective of all businesses remains profit-making through cost minimization and revenue maximization. In case the producers manufactured goods with high chances of product failures, they will be forced to incur high costs through repair and repl acement which will

Hybrid Cars Research Paper Example | Topics and Well Written Essays - 1500 words

Hybrid Cars - Research Paper Example Global warming has taken the better part of environmentalists. Anderson, in his publication, argues that the introduction of hybrid automobiles had a weighty significance to the environment (Anderson, & Anderson, 2010, p. 37). The first advantage attached to the introduction of this technology is that the automobiles pose less threat to global warming due to their low carbon dioxide emissions. This helps in conserving the future and reliable environment. Researchers suggest that the amount of carbon dioxide emitted by automobiles is proportional to the fuel energy they consume. Therefore, hybrid vehicles with low fuel consumption emit low amounts of the green house gases, thus, reducing threat to the ozone layer. For instance, the Toyota Prius hybrid from the United States reduces tailpipe emissions by up to 90% and green house gas emissions by around 50% (Hilgenkamp, 2005, p. 122). Scholarly research clearly depicts that the hybrid automobiles burn far less gas per mile compared to that of convectional cars. In addition, a number of harmful smog pollutants emitted by the hybrid cars are half compared to the traditional gasoline powered automobiles. This, thus, makes the hybrid automobiles more efficient to use. Due to the strong urge of improving mileage especially in the United States, they have encouraged people to use hybrid cars. This has resulted in the production of more and luxurious automobiles, which rely on low amounts of fuel.Low fuel consumption motivates individuals and states to poses automobiles. Petite MPG (miles per gallon) improvements on incompetent automobiles saves a large amount of fuel over a given remoteness of driving since the greater the MPG, the lower the amount of carbon dioxide produced when traveling a fixed number of miles. A clear example is portrayed by the Nissan Altima hybrid, which gets 35 mpg in the city and 23 mpg on the highway whereas the convectional car gets 33 mpg in the city and 32 mpg on the highway. Ultimately, th e MPG of a hybrid car is higher due to consumption of low fuel amounts as compared to the MPG of a convectional car, which is low due to high fuel consumption resulting to subsequent high carbon dioxide emissions (Stellet et. Al, 2011, p. 3). Arguably, hybrid automobiles consume less amounts of fuel thus reducing the need of foreign oil. The technology being outdated by the introduction of hybrid automobiles is known for high fuel consumption. In fact, statistic collected by U.S. Energy Information Administration (EIA)

Environmental audit Essay Example | Topics and Well Written Essays - 1250 words

Environmental audit - Essay Example DISCUSSION Anything that impinges on the firm can be included in the environment. The environment is not stable; in fact, it is increasingly turbulent due to the era of change and uncertainty in which we live. Changes are happening faster and faster, requiring continual response on the part of businesses. Thereby, it is becoming increasingly imperative for companies to carry out feasibility studies and environmental audits to assess the nature of the new market and plan the strategies accordingly. Tesco is one of the largest food retailers on the globe. It operates approximately 2318 stores and its employer base is over 326,000 people. The largest market of Tesco is UK where it operates under four banners including Extra, Superstore, Metro and Express. Tesco spans itself over almost 40,000 food products along with clothing and other non-food lines. Moreover, the company's self owned products which make 50 percent of the sales are at three levels, value, normal and finest. Tesco has g eographically expanded it self to locate in six countries in Europe along with UK, the Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland. It also operates in Asia, South Korea, Thailand, Malaysia, Japan and Taiwan Jordan is a constitutional monarchy which gained independence from the British in 1946. It consists of a well-educated population and the economy is supported through foreign loans, remittances and international aid.. The environmental audit revolves around the PESTLE factors, which are the political, economical, social, technological, legal and environmental elements. The PESTLE analysis would be used to develop strategies to help understand the environment that the company is entering and would operate in future. PESTLE analysis gives an overall picture of the feasibility of the venture and helps the organization in dealing with critical issues associated with entering an entirely new market. (Jewell, 2000) The political environment concerns the a ctivities of the state and trends in politics. Jordan is moving towards privatization, but still the government is in control. The mixture of privately and government-owned enterprises is called a mixed economy. The Business Freedom count of Jordan is 68.7 Business freedom is referred to the quantitative measure that assesses the overall regulatory burden to start, operate and close a business and depicts the regulatory efficiency of the government. The business freedom score is calculated between 0 to 100, 100 being the score of countries with the freest business environment. (The Heritage Foundation, 2011) Operating in a globalized environment with stores around the globe, Tesco's performance is highly influenced by the political and legislative conditions of the countries that it operates in, including the European Union (EU). (South, 2007) The economic variables play an important role in the environmental audit. The economic variables include the rate of growth of output and inc ome, the level of employment, the rate of inflation, the exchange rate and the balance of payments. (Jewell, 2000) Jordan has been progressing towards its economic infrastructure which has aided economic growth regardless of the challenging global economic environment. Levels of trade, fiscal, and investment freedom

Concern on environmental issues worldwide

Concern on environmental issues worldwide There has been a rising concern on environmental issues worldwide nowadays. Ministry of foreign affairs statistic shows that over the years, the temperature has been rise because of carbon dioxide trapped and green house gases have affected the global climate. This change will affect the people live all over the world. This also includes access to water, health, food and the well being of the environment. Todays consumers have started to recognize that their purchasing behaviors actually cause a big impact to the environment. Therefore, companies should practice offering environmentally friendly products and service to people to prevent this world become worse. Although, Malaysia has undergone an excellent development followed governmental efforts to attract foreign investor to come and invest for a green product development in Malaysia, the action of environmental responsible behavior among Malaysian consumers are still low. One of the examples of the lack of environmental responsible behavior is shown in an article in Bernama whereby garbage thrown by one of the state in Malaysia residents is the main cause of river pollution in the state. According to a survey which was handled on by global market insight and information group, only 8% of Malaysian respondents responded that they have changed their behavior in a greatest deal to benefit the environment on the aspect of eco-friendliness of habits and behaviors In addition 83% respondents reported that their views on a companys and their Colleges friendliness to the environment would influence them to purchases a green products and services. Studying the determinants of generation-Y consumers green purchase behavior will be definitely benefit green marketers. Generation-Y (also known as a millennial) is defined as A label attributed to people born during the 1980s and early 1990s. Members of Generation Y are often referred to as echo boomers because they are the children of parents born during the baby boom (baby boomers). Because children born during this time period have had constant access to technology (computers, cell phones) in their youth, they have required many employers to update their hiring strategy in order to incorporate updated forms of technology. In a simple word, generation-Y grew up with a technology and relies on those things to perform their job and their task. In addition, when going through a literature review in Malaysian context, there are still a gap existed between environmental knowledge, intention and behavior towards green product. [Said et al. (2005)]. Even though people that have vast knowledge about green products are not necessarily would buy a green product. Therefore, factors those determine and affect Generation-Y to purchase a green product would be worth to find out. 1.1 BACKGROUND OF THE RESEARCH Environment is defined as what surrounds a thing or an item or in other words it means the surrounding. It could be a physical element which is physical environment, that includes the built environment, natural environment such as air, water, land, atmosphere and etc or it could be human environment where people surrounding the item or thing which also known as the social environment. Today environment is getting worst and worst. Many environmental issues arise. Environmental concerns have been growing in recent years. One of the examples of environmental issue is global warming. Global warming and climate change refer to an increase in average global temperatures. Natural events and human activities such as burning garbage and waste are believed to be contributing to an increase in average global temperatures. This is caused primarily by increases in greenhouse gases such as Carbon Dioxide. The greenhouse effect keeps the earth warm when functioning normally. For the first time in h istory, human activities are altering the climate of our entire planet. According to (Jack, 2010), in less than 2 centuries, humans have increased the total amount of carbon dioxide in the atmosphere by 25% from the burning of fossil fuels and the destruction of forests. In addition to the natural fluxes of carbon through the Earth system, human activities, particularly fossil fuel burning and deforestation, are also releasing carbon dioxide into the atmosphere (The Carbon Cycle; the Human Role, Earth Observatory, NASA). Green product is define as a product that produce limited carbon footprints; they may require fewer resources to produce, consume less energy or emit fewer hazardous emissions.  Green product is also a product that is non toxic, water-efficient, and also recyclable and biodegradable. There are many green products that have been produce for people in the market. For example, a household cleaner. Nowadays its nearly impossible to go shopping without finding a plethora of products that claim to be environmentally and consumer friendly. Oddly enough, many cheap and eco-friendly substances, such as vinegar, have been used for years as home cleaners. Whether you buy a green cleaning product at a store or use something on hand in your pantry, you can reap the benefits of choosing products that are gentler on you and the environment. Phosphate-free dishwasher and laundry detergents are also consider a green product because they do not discharge environment-damaging phosphates into waterway s. Other examples of green cleaning products are those labeled certified biodegradable; these have passed several stringent tests relating to biodegradability and environmental impact conducted by an independent certifying agency. According to Consumer Reports, the certified biodegradable label is more meaningful than a general biodegradable label. Glass and metal cleaners, kitchen and bathroom cleaners, and laundry detergents are products that might carry this label. The rationale for going green is twofold. Clearly, the positive effects on the environment are a key driver for purchasing green product.  Green product provides myriad environmental benefits. They can replace toxic materials that may be harmful to people or animals. Also, some products save energy and water, while others limit solid waste and manufacturing releases. Green products create a healthier environment for people through reduced exposure to cleaners, solvents, paints and other hazardous substances. Green product also can reduce allergies. Many families find that their children are suffering from allergies, even though their family history does not necessary say that there are no allergies. In some situations, chemicals found within cleaning products contain allergens. Bleaches, toxic cleaning sprays and other chemicals used to clean the home commonly contain a variety of ingredients specifically able to cause or trigger allergies in people.   Generation Y are the cool generation, they embrace brand and live in the new world of digitize communication. Thus that might be interesting to find their perception and their level of awareness towards environmental issues that the world is facing nowadays. Gen Y has grown up in a very structure, busy and over planned world. Also, Gen Y is made up of confident, optimistic young people who feel valued and wanted. In a article of science daily, Gen-Y is a people that will go all the way when it comes to saving the environment as long as it benefit to world economic and environment. They are maturing into a pragmatic generation that wants to do the right thing for the environment but also has real economic concerns 1.2 PROBLEM STATEMENT Consumers or practically customers are the sellers and buyers that boost the countrys economy. Therefore, many firms are actually putting many efforts in order to attract more customers because these customers create businesses opportunities and generate profits to them. As the world nowadays facing so many problems regarding to an environmental issue, the consumers and their attitudes or behaviors to purchase a green product are the important factors to be considered. Consumers nowadays have more choices due to the effects of globalization. They will prefer the function of the product rather than the brand or whatsoever to ensure a healthier future. To determine the current level of Gen-y consumers preference towards the green products. To determine what are the determinants or factors of Gen-y consumer preferences towards the green product. To determine the consequences or effects of Gen-y consumer preferences towards the green product. To determine consumer level of awareness of Gen-y consumer towards green product. 1.3 RESEARCH OBJECTIVE Awareness towards environmental issue that the world nowadays facing play a major role encourage people to purchase a green product. Thus, this study is attempts to relate on the various variables that influence consumer especially generation-Y to purchase a green product. The objectives are as the following: * To study the factors affecting the consumer especially Gen-Y to purchase green product. Gen-y is a new generation and It is crucial to understand as they are more advance and modernize. Thus, several researches have been conducted in order to understand consumers in a way that how they behave, and what are the factors that cause them to behave or react to the responses of the products. Leading factors such as price and quality are always the top concerns to the consumers. Product attributes will moderate the effects of price on quality judgments. Partial of the consumers may focus on buying low prices goods and neglect the quality of the products. This group of consumers takes the price as a measure of sacrifice. For instance, consumers take the price served as the benchmark for comparing utility gains from the quality of the product. One the other hand, some portion of the consumers will be willing to pay a premium price for the quality and function of the products, as they are very sensitive to the signals of the quality of one product. Thus, it is hope that this stud y will contribute further to the understanding of factors of price and quality that may lead to the consumers prefer for a green product * To understand the awareness level of people about Go Green campaign. Nowadays, there are many environmental campaign have been organized by a government and private sector. This campaign is aim to encourage people to more concern about the environment. Thus, it is hope that this study will explore how people react to a environmental campaign and what is their level of awareness about the awareness campaign. * To examine the benefit for people involvement in Go Green program. We might be asking, how we will benefit from getting involved in this environmental campaign. Well, recently there has been an increase in events directly related to the availability of natural resources. For example energy shortages that resulted to load shedding, change in weather patterns and water shortages. As a result, civil society is recognizing the need to manage our natural resources more effectively and responsibly. In doing so, we can ensure positive effects on our health, quality of life and even the cost of living. Thus, this study will help people to getting known more about what they will gain if they participate in the environmental campaign. *To discover what consumer perception towards green product. In curiosity to identify what are the main components or criteria that consumer especially gen-Y are looking forward in order to purchase a green product. It is true that each and every one of us are special and unique in the way we are, thus, every consumer has their very own perception in purchasing a green product. Different people from different backgrounds may have different perceptions on these products. In addition to that, different demographic groups may have different perceptions to this kind of product as well. Thus, this study will help to identify whether the consumer especially gen-y prefer to buy a green product or not to safe a mother of earth. 1.4 SIGNIFICANCE OF STUDY This study is crucial as there are a lot of green products have been selling nowadays. Obviously, when we talk about green product, the price for that particular item might be so expensive. The study on factors affecting consumer especially Gen-Y buying a green product may allow us to know in depth why are previous efforts taken does not produce as it is thought it would be. Based on the study conducted, motivations towards the environment, knowledge on green product, social norm, awareness and self-image have an impact on the consumer especially Gen-Y buying a green product. Government may need to enhance its program in educating people green product. New and more interesting Go Green program and method is a definite necessity in motivating people to increase their interest/awareness on a green product and indirectly motivates them to purchase it. 1.5 SCOPE OF STUDY The research focus on students in Multimedia University (MMU) Melaka campus and teenagers from outside the campus which comes from various demographic backgrounds such as the faculty, ethnicity and nationality. The focused respondents are a great resemblance on the exact population in Malaysia. 1.6 ORGANIZATIONAL OF RESEARCH 1.6.1 Chapter 1: Introduction Regarding this chapter, it introduce the background of this research such as why do people as a consumer buy a green product. Thus, this will create a strong preference among the gen-y consumers locally and abroad to consume and purchase green products. These sections will explain in details in the of consumers preferences from the Malaysian perspective and as well from the global view for green products. This chapter also recognized the problem statement and the research objectives for this research. Finally, the justification of the research will help to justify the benefits and those who will gain in this research. Chapter 2 : Literature Review A thorough study will be conducted on the dependent variable and independent variables. The main purpose for this chapter is to weigh the pros and cons of the topic and to discuss in details on the ideas and knowledge concerned. In this chapter, every definition of the dependent variable and independent variables will be cited from the journals in order to strengthen every point mentioned. Several of arguments and various points of views from different authors in order to provide a stronger formation of each point can be founded in this chapter. In addition to that, this chapter explains the relationships on several independent variables relate to the dependent variables. 1.6.2 Chapter 3 : Research Methodology Research methodology is usually conducted after the thorough study of literature review. In this chapter, theoretical framework will be form to illustrate the relationships between the dependent variable and the independent variables. Hypotheses or a proposed explanation which were made on the basis of limited evidences will explain the relationships between two or more variables. All the hypotheses stated will be tested together with empirical data. This chapter also includes the description of the sampling data, data collections and as well as the development of the questionnaire for this research. Chapter 4 : Data Analysis After questionnaires are collected from all the respondents, then few tests will be conducted to test on the validity and reliability of the results. The responds of the questionnaires from the respondents are represented by a set of numbers that symbolize their own significant meanings. Whereas the tests that will be carry out are to analyze the responses from the respondents so that it will derive to a stronger conclusion at the end of this research. Chapter 5 : Conclusion This chapter will provide the final outcome of this research. Thus, the final results will be explained and we will be able to identify how the exact hypotheses that formed earlier are hold.

Animal Testing Essay -- Animal Testing

ISSUE: For the most part, we would not be able to live very comfortably without them. The question of what is considered proper treatment of animals has been highly debated by groups looking at both the moral and ethical issues of the situation. What exactly is our proper role with regard to non-human creatures? Do they have any rights, or may we do as we please with them? These are questions that politicians all over the world have been arguing about for many years, and still is as controversial as ever! PROBLEM: How can animal testing benefit both animals and humans without harming the animals? BACKGROUND: For thousands of years, humans have used animals for a variety of purposes including food, clothing, labor, means of transportation, hunting, medicine, and companionship. However, many personal beauty products, such as lipstick, face cream, anti-perspirant, and laundry detergent all have one major characteristic in common: the suffering and death of millions of animals (Dickinson 13). Canada has no legislation to protect laboratory animals from any form of mistreatment, abuse, or neglect. Great Britain has nothing in the way of constitutional ethical treatment of laboratory animals. In the United States, the U.S. Welfare Animal Act (passed in 1966 and later amended in 1970 and 1976) charges the U.S. Department of Agriculture with overseeing the humane handling and housing of animals in laboratories, pet dealerships, and exhibitions. While the law covers lab animals (such as rabbits, mice, dogs, and monkeys) it does not state that the animals are to be cared for or to be t reated for injuries received from experiments, nor does it state that animals in laboratories can be used for only a limited number of experiments with the least possible suffering and distress (Dickinson 15). In effect then, there is no protection given to lab animals. On average, 25 million animals die every year in North America for the testing of everything from new cosmetics to new methods of warfare. Five hundred thousand to one million of these animals are sacrificed each year to test new cosmetics alone (Dickinson 13). There are many kinds of tests performed on animals. One kind is the Acute Toxicity Test, which requires between 60 and 100 animals to determine what constitutes a lethal dose of a particular substance. The test spans a time period from two weeks to seven years,... ...ly limit their options. They have used animals for so long, their tests will most likely have to be changed. Changing the procedures of these tests could be extremely costly and time consuming. OPTION B: Requiring pet owners to spay or neuter their pets. ADVANTAGES: This is a very effective way to limit the number of animals used in testing. Many of these animals tested are often strays and have had no owner. If pet owners were required to â€Å"fix† their pets, it would really help in controlling the nation-wide pet population. There would be fewer unwanted animals roaming the streets in search for a mate; resulting in fewer unwanted pregnancies. Consequently, scientists would have a limited number of animals to work with. DISADVANTAGES: Breeders and pet-store owners would be in a bad position. This would mean that they would either have to go through tedious amounts of paper work in order to own animals that could still reproduce, or they would have to find a new career! For many people, taking care of animals has been a very big part of their life. Some have come to see it as more of a hobby than a job. For others, it may be the only thing that still brings joy into their lives!

Differences in Roles Among RNs, LVNs, and UAPs

Registered NursesA registered nurse (RN) is an important component of a medical facility’s healthcare team, be it in a hospital setting, private clinic, patient’s home, or a nursing facility for the elderly. While most nurses work in acute care hospitals as hospital nurses, they also care for patients at hospital bedside, private clinics, and in private homes.   In hospitals, they are expected to perform the following tasks:Provide bedside care for hospital in-patients; Monitor all aspects of patient care, including diet and physical activity; Administer treatment and give medications to patients under the direction of physicians; Observe the patient, assess and record symptoms, and note reactions and progress; and Develop and manage nursing care plans and instruct patients and caregivers in how to perform tasks they can do themselves.Registered nurses may also work in clinics and patient’s homes, acting as an intermediary between the physician, hospital staff, and the patient.   They may also supervise other home health workers, including licensed vocational nurses (LVN) and unlicensed assistive personnel (UAP).   Registered nurses have to complete a Bachelor’s degree in Nursing, take and pass the National Council Licensing Examination (NCLEX), and secure a license for nurses at the California Board of Registered Nursing, if they intend to practice nursing in California.Licensed Vocational Nurse.   A licensed vocational nurse or LVN is an entry-level health care provider responsible for rendering basic nursing care.  Ã‚   Anyone who wishes to become an LVN has to attend a nursing school offering LVN, which is normally shorter and less comprehensive than a regular course for registered nurses.   After completing the academic and practical requirements of course, she can take a state board examination to practice the profession.  Ã‚   LVNs care for the sick, injured, convalescent, and disable under the direction of physi cians and registered nurses.LPNs provide basic bedside care, taking vital signs such as temperature, blood pressure, pulse, and respiration. They also prepare and give injections and enemas, monitor catheters, apply dressings, treat bedsores, and give alcohol rubs and massages. LVNs monitor their patients and report adverse reactions to medications or treatments. They collect samples for testing, perform routine laboratory tests, feed patients, and record food and fluid intake and output. To help keep patients comfortable, LPNs assist with bathing, dressing, and personal hygiene. Some LPNs help deliver, care for, and feed infants. Experienced LPNs may also supervise nursing assistants and aides.Unlicensed Assistive Personnel.   The term unlicensed assistive personnel (UAP) is a common one. A UAP is better known as a caregiver.   Examples of UAP include, but are not limited to, certified nursing assistants, home health aides, and patient care technicians.   Direct patient care activities are delegated by the registered nurse and assist the patient/client in meeting basic human needs. This includes activities related to feeding, drinking, positioning, ambulating, grooming, toileting, dressing and socializing and may involve the collect ting, reporting and documentation of data related to these activities.Indirect patient care activities focus on maintaining the environment and the systems in which nursing care is delivered. These activities assist in providing a clean, efficient, and safe patient care environment and typically encompass categories such as housekeeping and transporting, clerical, stocking and maintenance supplies.   Many people, specially the elderly, find it desirable to seek non-traditional unlicensed in such settings as assisted living, adult day care, and home care.

Pocket Should Be Given to the Teenagers or Not

Yes, they definitely should. Nowadays teenagers are moving to independence and it will help them if they have some practice in managing money. Giving pocket money teaches teenagers to manage money while they are still young and parents can still guide them. Also, it help teenagers to make choices and to see that sometimes people have to wait and save up some money to get what they really want. While searching for the story idea today, I came across an interesting survey on pocket money been given to the teenagers and young adults. For once, it struck me that this unique yet interesting subject has never been covered on this site before. So, let me take a dig at it. The important predicament of pocket money must have certainly flashed your mind either during your childhood or as a parent now. Of course, the dilemma is always much more grave if you are a parent. Parents extensively differ in their perspectives of upbringing children in a system of granting pocket money to take care of their petty expenses. At first, the definite expenses that should be termed as ‘petty’ is pretty much subjective in nature and needs to be well-defined to start with. The second question you need to ask is – what is the extent to which a child be given freedom to spend money which is deemed as pocket money? While lot of parent’s concerns revolves around promoting unhealthy competition amongst children on the amount of money they get and loss of control on a child’s spending habits, there are also some positive lessons for teenagers such as inculcating money management skills and making tough decision regarding spending desires that offer less value to their lifestyle. The â€Å"Current Pocket Money Trends in Urban India† survey by ASSOCHAM has cited that metropolitan children in the 12-20 age group get as much as Rs. 3600 to over Rs. 12000 a month of pocket money to spend on apparels, physical appearance, cell phone and other lifestyle products. Further, the monthly pocket money of teenagers and young adults, in cities like Delhi and Kolkata, have surged whopping 10-fold since 2005. In Ludhiana, 45% of surveyed teenagers get an allowance of Rs. 2000 on weekly basis. While the urban teens spend about 55% of their pocket money on electronic gadgets, almost a quarter of it goes towards watching movies and spending in malls. The remaining 20% of allowance goes towards eating out and food. The surprising factor over here being that with rising cost of living and soaring inflation, the pocket of teenagers has also grown deeper. Rather than controlling the overall family budget, parents have shown generosity in ensuring that their children maintain their prevailing lifestyle and spending habits. While giving pocket money to teens is not so bad a concept, you must also ensure that you allocate the right amount of money towards it which is more suitable to your family budget. At the same time, see to it that the sum granted by you is comparable and realistic to meet the day-to-day requirements of your child’s life. POCKET MONEY Pocket money as the name suggests is money given to children to take care of petty expenses. This amount of money can be given by parents' everyday, every week or every month or even on adhoc basis, as and when the child requires it. As long as the child has the freedom to spend the money, it will be deemed as pocket money. Parents extensively differ in their perspectives of whether or not to give pocket money to children. Some parents believe that pocket money should not be given since * That will make the child feel that ‘parents money is not his/her money', * ‘It could lead to fights between children', * ‘Unhealthy competition amongst children on the amount of pocket money they get' * ‘Loss of control on where children spend the money' However, giving pocket money to children has several advantages: * Children feel a sense of independence and responsibility towards spending the money the right way. They learn & understand the value of money. They also learn to understand that amount of money is limited and they need to always choose between their various desires to ensure correct use of their pocket money. * Children get into the habit of planned income and expenditure. They also learn about saving & budgeting. For eg: if they want to buy a present for their mother's birthday, they will need to put aside some amount of money every month to collect the commensurate amount and buy the gift. Giving pocket money to children also makes them feel an important part of the family since they know that they get a part of the family's monthly income. Some parents even believe in their children earning pocket money. What does that mean? It means that parents can often inculcate values/ beliefs/ actions in their children by rewarding them for it in the form of pocket money. In such cases, pa rents divide the pocket money amount in two parts: * One that is given on a timely basis. * Second that is earned against some house jobs. For eg: every Sunday, you could start giving a fixed sum of money to your son if he helps his father in cleaning the car. Or if your daughter helps around in dusting the house. This will in a way also inculcate the habit of weekly cleanliness in them since childhood. Similarly, if you strongly wish to inculcate the value of ‘ helping others' in your children, you could promise them an extra sum of money during summer vacations if they help your maid's child learn the basics of math. Once parents are clear that they want to give pocket money to their children, they also need to decide when is the good time to start giving the same to their children. Once children start spending sometime away from their parents in going to school, sports classes, tuitions, etc, they need to carry some amount of money on them. This could be a good time to start giving them pocket money. Obviously, in the beginning, the amount of money should be small and should be periodically reviewed as the child grows. For eg: you could decide that every birthday, you will give an increment to your child’s pocket money. Additionally, if your child excels in academics/sports, they could get higher pocket money increments! When parents start giving pocket money to children, they need to explain to them where the money is to be used. For eg: when you first give Rs. 50 to your daughter, you need to explain that this money is to cover her school special lunch, candies/soft drinks requirements for a week. If the child is given money without any direction, you could run the risk of the child using the money is a way that does not agree with you. In such cases, parents need to be very careful in not micro- managing where the child spends the pocket money, else the child will get irritated and will not get the ‘sense of independence’ that parents want to instill in the child. Parents must explain to children that pocket money is to be used over the week/ month and hence children should plan their expenses over the time frame. It must be made clear that in case children use-up their money earlier, they will not be given extra money. Pocket money will be given only on the fixed day as decided. This will help children learn the concept of planned expenditure and savings. Parents must always ensure that they give comparable pocket money to their children. It should neither be too much or too little compared to friends. Giving more pocket money than friends will make your child spend more and consider money as frivolous and easily available. If your child gets less pocket money than his/her friends, it will lead to an inferiority complex and the child might start resenting you. Last, but not the least, parents must be careful not to use pocket money as a way of punishment to their children. Often, parents use ‘suspension of pocket money’ as an easy way of punishing their children. This format of punishment is not wrong to use but must be applied carefully. I. e if the child has a broken a beautiful vase and you want him/ her to understand the value of the same, you can penalize the child by deducting/ taking away the month’s pocket money. But you cannot start using pocket money as a weapon to get the child to abide by all your wishes. For eg; you might want your child to have two glasses of milk everyday which he may not want to; in such cases by incentivizing the child for more pocket money will be wrong to do since such a format of giving money is not pocket money but ‘bribe’. Similarly, pocket money penalty cannot be used as a blanket punishment to all wrong – doings. If the child starts feeling that he/she will never really get pocket money due to some punishment, he/she might be tempted to steal money from parents.