Children Pocket Money

Kid’s pocket money advise tips.

Children Pocket Money

  • Whether you give your children pocket money is a decision for your family.
  • Advantages of pocket money can be that children:
    • develop a sense of how much has to be done to earn money
    • learn that ‘money doesn’t grow on trees’
    • learn what money can buy – how much they need to buy what they want
    • can have their own money to spend – helping them develop self control and understanding the value of money
    • learn about saving
    • will know there is a set amount of money rather than asking for money all the time.
  • Disadvantages can be that:
    • children may think they will get paid for everything they do to help
    • you have to find the money to pay them regularly
    • it is hard to know what the pocket money is supposed to pay for – there always seems to be something more.
  • If you decide to give pocket money you need to work out:
    • how much is reasonable
    • whether the money will be paid for doing chores
    • how much must be done to earn it – and how much is simply because ‘you are a member of the family’
    • how much each job is worth
    • whether all children get the same amount or the older child gets more
    • how much control parents will have over the use of pocket money – do they have to save some? What can they buy with it?
    • when you will pay – the children won’t learn about the responsibility of money if you don’t honour the agreement.
  • An idea might be to give your child a set amount each week, putting half in a savings account.
    • At the end of a time agreed on by you both – perhaps three months – the child can spend the saved money exactly as they wish.
    • If they choose to ‘waste’ it on lollies they can do so.
    • However most children want something special and usually prefer to save for that particular thing and not waste it on a brief pleasure.
    • This helps teach them the value of saving.