Allowing your children to receive regular pocket money can help them learn the benefits of saving, whilst doing chores and teaching them the value of money. But the one hesitant factor that stumps parents is – how much should we give our child?
THE POCKET MONEY AGE
This all depends on your parenting. Some prefer to start offering pocket money to children as young as 4-5 years old, but others wait until their 9-10 years old.
Here is a few rules to maintain pocket money for your children:
Money can buy you things.
Saving money will allow you to more expensive items
Spending your money in one go means there won’t be anymore until your next ‘payday’/next time you get pocket money.
HOW MUCH SHOULD I GIVE?
According to surveys, children who are older receive around £5.00 per week in pocket money. However, this amount can vary based on your parenting style and your financial circumstances.
Tip: If you can’t afford to give your children money, why not create a token system that allows them to save up for an activity, such as a surfing less, family picnic in the park or the beach.
NEVER FEEL PRESSURED INTO PAYING MORE THAN YOU CAN AFFORD
WHEN SHOULD I GIVE POCKET MONEY?
If you pay your child pocket money on a set day each week or month, this will help them prepare for earning a wage later in life. The aim of pocket money is to teach them not to overspend, so giving in or supplementing because they’ve run out of funds won’t help.
If your child has been naughty and they’re too old for the naughty step, you can suspend their pocket money as a punishment.
Tip: Child psychologists stress that it can discourage your child’s saving strategy if you ask for the money back.
WHAT IS POCKET MONEY FOR?
If you already give you children pocket money, you would have noticed that they want to spend it on sweets and toys. However, the older the child the more they become aware of saving for more expensive items such as a new bike, video game or even a surfboard.
Having an older child on pocket money can open the door for parents to provide them with a larger sum of money but they must use this to pay for school lunches, public transport or clubs they take-part in outside of school. This teaches your child budgeting.
SHOULD I GIVE MY CHILD POCKET MONEY FOR COMPLETING CHORES?
It all depends on how your family functions. Some parents have a list of age-appropriate chores suited to the child’s age and others won’t let their child help out around the house until they’re a teenager.
Choosing to reward your child with pocket money when completing chores means they should be regular.
COMMON WAYS TO EARN POCKET MONEY
Washing the car
Putting the bins out
Mopping the floor
Making the dinner