Should You Give Your Kids Pocket Money
There are lots of reasons to give your children pocket money. They get to learn about the value of money, buy their own toys and figure out that they can choose between getting something small now or saving up for something big.
There are a number of arguments for and against giving kids pocket money, when you start, and how much you should give.
Arguments for pocket money include:
- Teaching children about the value of money.
- Teaching children how to manage their money.
- It gives children more independence.
- Can be used to teach children about the benefits of giving.
- Can be linked to chores or for other motivation.
Arguments not to give pocket money include:
- Can undermine the need to just contribute and help out. Children can stop doing things to be helpful and only want to do chores if they get paid.
- Chores related to pocket money can lead to limiting money beliefs that earning money is hard work.
- Giving pocket money can be hard if you have a tight family budget.
- If you are giving money you need to also help kids by teaching them to make good decisions.
What age you start giving pocket money is also up for debate with some parents believing there is value in starting young while others wait until children are older. For pocket money to be of value children need to understand the basic concept that you need money to buy things and how much things cost in relation to the money they have, And they need to get that they can either spend their money now or save it to buy something more expensive.
How Much Pocket Money Should You Give?
Again this is not a question with a definitive answer. There is no standardised amount of pocket money that children should be given at different ages. However, if you have decided that you do want to give your kids pocket money the next thing you need to decide is how much.
This is a very personal decision. You can look up averages online, or you could link it to their age, say £1 or 50p per year, so the amount they get increases as they get older. Or you could consider the types of things they might want to buy, a book or a toy, and how long feels like a reasonable time for them to save for it.
As well as deciding an amount to give you also need to decide whether pocket money is linked to anything, for example, do children have to complete certain tasks in order to get their pocket money, and how you give it. Do they get cash, or are you going to use an app or open a bank account for them.
As there are many things that children will wish to buy online, having a pre-loaded card for them to use might be a good option for older children. Or having an app where they can see money build-up and choose different pots to save for bigger things. Giving young children real coins helps them not only learn about the different coins and how much they are worth but makes it easier for them to understand how much things are when they actually have to hand over physical cash.
Next Up: What Are the Benefits of Pocket Money