Before you start
We need to add a very big health warning to all of this.
Every family is different as are their beliefs, values and financial circ*mstances. What we are giving here are very general tips to try and help you understand the subject and are in no way designed to be taken as gospel.If you can’t afford to give a certain amount then that’s totally fine and you shouldn’t feel pressured to meet a set level.
We also need to say that kids are all different. Whilst some 5 year-olds are ready to start managing their money, others either aren’t able or aren’t interested in having their own cash. So again, don’t feel that just because we say 5-7 year-olds should be starting to have their own money that your child should too.
If you’d like to know more about what children are receiving in the UK you can check out the Education Quizzes survey on packet money where there are some surprising findings.
Pocket Money Age 5-7
At this age, children are just beginning to understand the concept of money. They will probably have received cash for birthdays and Christmas and will have enjoyed spending it and as they start school will be speaking with their friends where the subject may well come up.
Pocket money can be a good way to introduce them to the idea of saving and spending. A good starting point might be £1-£2 per week. This can be used to buy small treats like sweets or stickers.
Pocket Money Age 8-10
By this age, children are beginning to understand the value of money and can start to learn more about budgeting. It doesn’t need to be too heavy but it is helpful if they are encouraged to save a little of their pocket money to buy something bigger at a later date.
A reasonable amount of pocket money might be £2-£5 per week. This can be used for small purchases like toys or books, as well as to save for larger items.
Pocket Money Age 11-13
Children at this age are starting to become more independent and may want to spend their own money on things like clothes or entertainment.
As they get older their tastes and interests change and having a little more cash helps them to start to explore their individuality.
Many children will start to get heavily into a specific interest such as music or sport and in this case the parent may choose to give a bit more cash to pay for the expenses of this.
A reasonable amount of pocket money might be £5-£10 per week. This can also be a good age to start introducing the idea of saving for long-term goals.
Pocket Money Age 14-16
Teenagers at this age may have more expensive tastes and may want to save up for bigger purchases like electronics or concert tickets.
As they move towards adulthood teenagers will need money for personal care and will want to buy their own toiletries etc without mum breathing down their neck.
A ‘retail experience’ or night out with friend can also be valuable social learning opportunities so it is important that they feel they can take part.
A reasonable amount of pocket money might be £10-£20 per week. At this age, it’s also important to start discussing the idea of part-time jobs and how they can earn money for themselves.
Pocket Money Age 17-18
By the time children reach their late teens, they may be starting to prepare for life beyond school. It can be a good idea to encourage them to save money for things like college or university expenses. A reasonable amount of pocket money might be £20-£30 per week.
Again, by this age children may have become heavily involved in a particular interest and parents may choose to support them in this by giving more money to help them develop their skills.
Other pocket money factors
Of course, these are just general guidelines, and the amount of pocket money you give your child will depend on a variety of factors, including your family’s financial situation and your child’s needs and responsibilities.
Here are some additional factors to consider:
- Cost of Living: The cost of living can vary greatly depending on where you live. If you live in a more expensive area, you may need to give your child more pocket money to cover the cost of everyday expenses.
- Family Budget: It’s important to consider your family budget when determining how much pocket money to give your child. Make sure you can afford the amount you’re giving, and don’t feel pressured to give more than you can afford.
- Responsibilities: If your child has additional responsibilities like paying for their own school lunch or transportation, you may need to give them more pocket money to cover these expenses.
- Part-Time Jobs: If your child has a part-time job, they may not need as much pocket money as they can earn money for themselves. Encourage them to save a portion of their earnings for long-term goals like college or a car.
- Parental contributions: not all children want pocket money and a sizeable number receive no cash at all with the parents taking care of all their needs. Be prepared for your child to be quite happy for you to pay for the things they need. Not everyone loves money!
Ultimately, the amount of pocket money you give your child will depend on a variety of factors. It’s important to have open and honest conversations with your child about money and to set clear expectations for how the money should be used. By providing your child with an appropriate amount of pocket money, you can help them develop good financial habits that will serve them well into adulthood.
