It can be tricky to know how much pocket money you should award your kids with each week. It can also be a worry thinking that the cash you hand over might either go on giant bags of Haribos on the way home from school or on something that seems pointless to us adults (plastic aliens, perhaps- we’ve been there).
However, giving kids pocket money offers them the opportunity to learn money management and important skills in saving and budgeting.
Why should you give pocket money?
Pocket money gives children the chance to manage cash for the first time- even if it’s just a small amount. They’ll likely be tempted to splash it all at first, but given a few nudges they can become more money-savvy.
Handing kids a jam jar to save some of their money in towards a wished-for item is educating them in being responsible and forward-thinking with their cash. It also encourages working towards goals and teaches them the benefit of waiting for the bigger reward. Encourage kids to be proud of saving up their money.
Older children may benefit from having their pocket money loaded onto a prepaid bank card by parents- find out more here.
How much pocket money do parents normally give in the UK?
The average pocket money per week in the UK is around £7. You may want to adjust this amount to be lower for younger children, and a little higher for teenagers who have more independence and trips out with friends.
If you can’t afford to give around £7, don’t worry, merely give them what you comfortably can. If kids wonder why they don’t get as much pocket money as a friend, this is a chance to have a conversation about differences in financial circumstances. Being honest with kids about the cost of living crisis is also helpful for them to understand.
Should pocket money be given for chores?
For kids of a certain age, earning money through household chores can be a valuable lesson. Plus, it helps parents out around the house! You could start from primary age with simple tasks like keeping their room tidy. As children grow a little they can progress to emptying the dishwasher or washing the car. Older teens can take the bins out, or pick up items at the shop.
Earning through chores teaches children that ‘making’ money is positive and results in a reward. This stands children in good stead for getting their first part time or full time job in the future and having a positive attitude to work.
You could price each chore at £1- as long as it isn’t over too quickly and lasts several minutes. This gives them a clear chore= reward understanding, and helps them see clearly how much pocket money they can make.