Pocket money for kids: how much should you give? A guide for parents

Being a parent means teaching our children important life skills, including the value of money and how to manage it.

Pocket money for kids is a great way to offer children a small bit of financial responsibility and encourage them to budget by experiencing the consequences of overspending. It can also help them learn the discipline of delayed self-gratification by introducing the concept of saving up for something and working towards a reward.  

The topic of pocket money is a popular one on our Talk boards.

“I’ve found it has helped them understand money better and the cost of things,” Emrie shared recently. 

“Having pocket money, even if it is just a few pence, can help you model the value of saving,” BendingSpoons said in another thread. 

With Discovereads adding: “We helped them seek out bargains and taught them the power of saving”.

But exactly how much pocket money should you be giving? And how can parents ensure their discussions surrounding money set their children up for a responsible future?

How much pocket money should I give my child?

The amount you give is ultimately up to you but many parents believe that it should be based around age. It’s worth sitting down and deciding what you expect your child to use their pocket money for. If it’s a few treats per week, total up the cost and go from there. If you also want to give them the option to use part of the pocket money to save towards something bigger, try a larger amount. 

Get your child involved in the discussions too. If they feel they need more money per week, try and figure out ways they can budget their cash first and present it to them as a challenge. 

Some of our Mumsnetters suggested doubling their age as a monthly amount. So if they’re seven, they get £14 per month. Or £30 a month for 15 year olds. 

Alternatively, NatWest Rooster Money has seen parents opting for different amount paid on a weekly basis. For instance, start around £3 for a six year old (approximately £12 a month) and increase gradually until around £8 for a 17 year old (roughly £30 a month). 

Either way, you should always do what works best for your household income.

You may want to increase their pocket money by age, upping it by whatever you can afford to budget for. You could also tell your child that their weekly pocket money will increase from their next birthday but only if they display good habits with money. So like with a job, this may encourage them to work harder for that pay rise.

How can I teach my child to save and budget?

It’s important you make it clear to your child what their pocket money is for. Perhaps you’re still willing to pay for their treats as a family but the pocket money is for a few little extras, like a magazine, a toy or a tasty treat from a cafe.

Ensure your child has an understanding of their weekly amount versus what certain things cost. And if they dip into their pocket money, be sure to discuss how much they have left for the week or month. 

What rules should I enforce with spending?

Many of our Mumsnetters believe that children should be free to spend their pocket money on what they like. You may want to interfere if they’re buying too many of one item or spending a large chunk on something they won’t get much use out of.

If your child is constantly running out of pocket money, suggest they take a day or so to think about every purchase before buying. This may prevent them from impulse spending that they later regret and also reinforce the value of something.

You may want to discuss bigger items that will require saving and ensure they are putting some of their pocket money into a separate pot. 

If your child overspends and runs out of money, don’t be tempted to give them more. Unless it’s an emergency, it’s important that children realise the consequences of their actions and enduring a week or so without pocket money could teach them to be more mindful of their budget in the future.

Should I operate a reward scheme for pocket money?

Some of our Mumsnetters allow their children to earn extra money through chores, which is a good way of teaching them that with hard work comes reward.

Some parents insisted the chores must be things that benefit the whole family and not just household responsibilities that they should be doing anyway. Washing the car or taking the dog for a walk are good examples. 

But making their own bed or taking their dinner plate to the sink are probably behaviours you expect of them regardless. Be careful that your child doesn’t start to expect financial reward for every display of good behaviour. 

You may also want to give them a pocket money boost if they achieve a good grade on an exam or win an award at school. Discuss this in advance and it could be a real motivator during exam season.

What lessons should I teach my children about money?

When it comes to advice, our Mumsnet talkboards are a safe space to find tried and tested tips from real parents. For helpful hints, check out our guide to discussing money with kids. 

What is NatWest Rooster Money?

The Rooster Money prepaid debit card and app enables children to divide money into different pots based on spending and saving. They can even donate to a charitable cause. 

The Rooster Money Card is a prepaid debit card that you can set spending limits on and top up the balance from your phone. You can also get real time notifications on spending and instantly freeze.

• The Star or Reward Chart can be used to encourage positive behaviours from a young age. You can set your child’s currency to stars and attach a note to each one to explain what they did to achieve it.

• The Virtual Money Tracker is a free tool and allows parents to set pocket money allowances and also track their child’s spending habits. including how much they’re spending. You can also choose to give them a set amount of money per week or month or boost their allowance on an ad-hoc basis.

Rooster Money is very popular with our Mumsnet community. 

LunaLoveFood recently shared: “We have a Rooster Card, which is linked to chores. DS8 almost 9 gets £5 per week and has been able to save up for roller skates and LEGO sets that he has wanted and it works really well for us.”

“My 6 and 8 year olds get £3 base a week”, Mumofsend, who uses Rooster Money, added. “[This] is split 50:50 into savings and spends. They can earn an extra 20p a day for helping me with a job each.”

“Another vote for the Rooster card here,” AvocadoSurprise added. “Lots of useful features on the app. I thought anyone could have one & you don't have to bank with them.”

How to get the NatWest Rooster Card

Visit the Rooster Money website to sign up, and get started with a one month free Card trial. 

You can download the Rooster Money app from your App Store or Google Play. NatWest Rooster Money Card fees apply via auto-renewal once the free trial period has ended, £19.99/yr or £1.99/m. Card for ages 6-17. Parents/guardians must be 18+ and UK residents. Some card designs may incur a fee and are subject to availability. T&Cs apply, see website for details.

Setting up the account is simple and the card usually takes between 5 to 10 days to arrive. Once you've received the card, tap 'It's arrived' on the app and your child's account will be activated and ready to use.

The Rooster Money card subscription is free to existing NatWest Group customers, who can also order up to three cards for free. If you’re a NatWest Group customer, you can get up to three Rooster Card subscriptions free for as long as you’re with the bank. To be eligible for the free Rooster Card subscription offer you must be over 18, a UK resident, registered for either Mobile Banking or Online Banking with kids aged between 6 and 17. Offer includes up to three cards. Other fees may apply. T&Cs apply, see website for details.

About NatWest

NatWest Group is one of the largest banking and financial services groups in the UK, guided by a purpose to champion potential and help their customers and families to thrive. Rooster Money is a great example of how they're arming families with the tools to discuss and educate children on finance and making positive steps with their money - all whilst offering full parental control.

About the author

Kat Romero is a writer and journalist with over a decade’s experience in the industry. Hailing from London, she has become experienced in scouring the market to find the latest and best products and services that are designed to make parents’ lives easier. 

Away from her desk, Kat can be found consuming far too much coffee and spending her weekends with her toddler and partner - soaking up the sights of London and sampling anything new and exciting that has opened up within walking distance.

Read next: Kickstart your kid’s savings habit with NatWest Rooster Money