Should I give my child pocket money?

If you can afford it and choose to, giving pocket money can give children a great opportunity to manage their own money.

  • Helps with decisions about spending and saving
  • Nurtures good money habits
  • Gives an appreciation of money

Giving a child pocket money

 

 

When to give pocket money

Start helping your child understand money as early as possible.

Even very young children can learn about swapping money for ‘things’ and put coins in a piggy bank instead.

You could start by giving a small amount of money. As your child gets older, you could set up a regular payment into a children’s account.

People often use cards to pay for things. By handing out pocket money, young children get the chance to learn the value of different coins. They also learn that once money is spent, it’s gone.

Why should I give my child pocket money?

Giving pocket money allows your child to manage their own money and build good money habits. Giving it on the same day each week, will help them learn to budget.

Spending their own cash tends to make children more interested in looking at prices and finding a good deal. It helps them see what they can afford and helps with the basics of budgeting.

By encouraging your child to save for something special, they can learn about delayed gratification, see how small sums add up over time, and get a sense of achievement from reaching their goal.

Above all, it’s better for children to make mistakes at pocket money prices, than start overspending and run up debts as adults.

How much pocket money should I give?

The amount of pocket money is entirely up to you, depending on your child’s age, what they are expected to pay for and your own financial circumstances.

The average UK pocket money according to statista.co.uk is around £5.00 a week – information correct as of June 2024.

You might start small, giving young children a pound or two each week for small treats like sweets and comics, building up to a bigger weekly allowance for teenagers. 

Setting an appropriate amount and increase it as your child gets older. It’ll help them learn to manage their money without pestering you for extra cash.

Good to know

 

Let your child earn a bit of cash for doing jobs around the house. It’ll help them make the link between working and earning.

  • Giving a certain amount each week, with the chance to earn extra for doing jobs.
  • Earning pocket money. Children earn their weekly pocket money for doing age-appropriate jobs around the house.

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