How much pocket money you give isn’t important. Giving children even the smallest amount of money regularly is a great way to help them learn how to manage money.
This might be pocket money or paying them for chores they do around the house, or both.
This helps them to practise learning to save up for the things they really want.
There are many ways to handle pocket money. Here are some options:
- Weekly pocket money – let them save up for what they want and give treats only at special times such as birthdays or holidays. This can help teach them to budget and save.
- Opportunities to earn – they could earn pocket money by doing chores around the house.
- Weekly pocket money and opportunities to earn extra money – this way, they get regular money to manage, but can earn extra if they want. Although you might need to set a limit on what they can earn if you’re budgeting yourself. Explain this limit to your child so they can see you managing your finances.
Before you decide whether you want to give pocket money or have your child earn it, think about what your child will have to buy from their money. Will you buy them extra items or do they pay for it all? Thinking this through will help you to budget and your child to learn what they need to save for.