What pocket money is for

Pocket money is a small amount you give your child regularly. Some families call it an allowance.

It's for practice. With their own money, a child learns to choose. They learn that money runs out. And they learn to wait for things.

A talk can't teach that. Doing it can.

How much should you give?

There's no right number. It depends on your family, and on what the money is for.

Here's a good way to decide. List a few small things your child often asks you to buy. A snack, a comic, a game top-up. Pocket money can pay for some of those.

That way the choices are real. If they buy a snack today, there's less left for the comic on Saturday.

Start small. You can give a little more on birthdays, or when they take on more.

When to pay

Pick one day, like every Sunday. Pay the same amount each time, without being asked.

Weekly works well for younger children. A week is easy to understand. Older children can try monthly. It's harder, so it teaches planning.

Should pocket money be linked to chores?

Families do this in different ways. Here are three.

  • A set amount, no jobs. Pocket money is for learning. Helping at home is part of family life, and isn't paid.
  • Paid for jobs. Money comes from work. This teaches earning. But some children stop helping when they don't want money.
  • A mix. A small set amount, plus a chance to earn more with extra jobs, like washing the car.

The mix is a good middle way. Everyday helping stays unpaid. Extra jobs show that work can earn money.

A simple plan: jars

Give your child three or four jars, or envelopes. Let them label each one.

  • Spend: for small things now.
  • Save: for something bigger, like a toy or a book.
  • Give: for a cause they choose.
  • Future: for much later. This money stays put.

When pocket money comes, they split it first, before they spend any. This is called "paying yourself first".

Say your child gets 10 a week. They might put 2 in Save, 1 in Give and 1 in Future. That leaves 6 to spend.

When the money runs out

It will. That's fine. It's part of the lesson.

Try not to top it up, or lend them next week's money. If you do, the lesson goes away. Be kind about it, though.

You could say

“That's hard. Your next pocket money comes on Sunday. What could you do differently next week?”

Cash or a card?

Start with cash. Children can see it and count it. When it's spent, it's gone from their hand.

Later, a card or an app for children can help. A parent sets the limits. First, talk about how card money works. Our guide to card, phone and QR payments can help.