Let’s talk pocket money with Money Advice Service

[EllieMumsnet]

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Navigating the world of pocket money can be a little tricky, especially since the rules are always changing. However it can also be for many children their first introduction to the concept of money and how to deal with it. That’s why in aid of ‘Talk Money Week’, Money Advice Service would love to hear all your thoughts, experiences and tips when it comes to pocket money.

Here’s what Money Advice Service has to say: “Children learn about money earlier than you’d think: by the age of 7 children have begun to form money habits. That’s why it’s never too early to start teaching them where money comes from and how to handle it. Giving pocket money – no matter how little – is one way to help children's’ money skills."

How much pocket money do you give your child/children? Do you set up a system where they can earn more if they do chores or do well in school? What about what they can spend it on? Are there any limitations or do you try encourage them to save it for something big? How much pocket money did you get when you were a child? And what age do you think it’s appropriate to start giving them pocket money?

Tell us everything about pocket money on the thread below to be entered into a prize draw where one MNer will win a £300 voucher of their choice (from a list).

Thanks and good luck with the prize draw
MNHQ

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[angiehoggett]

I think it's a good thing to get them thinking about money and the worth of money. 50p a week is a great idea as they can save up and see the value of saving.

[mollymoo818]

I use pocket money as a bribery technique. They start off with a fixed amount each week and every time they don't do one of their chores some money gets deducted. It has worked pretty well so far. I also encourage them to save some of it to buy themselves treats and I tell them (within reason) that whatever they save towards something that I will match it which has really helped with there attitudes towards saving.

[badgermum]

My children earn pocket money we have a notepad which keeps track of their earnings and they can choose to cash them in or keep on saving, we generally pay 50p for hoovering or emptying the dishwasher and for something like washing the car or cutting the grass they could earn £2

[rocketriffs]

My 8 yr old gets £5 per week and then extra for doing chores. He does save for things he wants and I will price match him, eg if he wants a toy that costs £40 and he has managed to save £20, I will meet him halfway and give him the remaining £20.

[Ihatemyseleffordoingthis]

How much pocket money do you give your child/children?
10p per year of age pw till 10
£1 per year of age per month by standing order into account from 11.
(plus phone credit and main hobbies paid for). £5 per month from granny. They will get a bit more when they start going out more/wanting to buy own clothes.

Do you set up a system where they can earn more if they do chores or do well in school?
NO! Terrible idea. Entirely separate. Regular chores and effort in school are expected. Rewards take other forms. If they needed a big chunk of money I might set them up with a project to earn it though.

Are there any limitations or do you try encourage them to save it for something big? No limitations

How much pocket money did you get when you were a child? I can;t remember, until mid teens when I got the child benefit £7.10 per week or something. It was tons.

And what age do you think it’s appropriate to start giving them pocket money? 7 or 8

[Pinktilgate]

I think pocket money is a fantastic idea! It gives children the opportunity to learn a little about the aspect of money and saving. We give our son £5 per week and if he wants something he saves up (usually the bank of Mum / Dad) will help him out a little. We are also going to introduce earning money for additional chores!

[Helsbells68]

When they were old enough we gave out two simple chores to do to earn their pocket money (wages) and they were advised on how to save it for things they really wanted but did not want to wait until Christmas or a Birthday for.

[hibbertheather]

I haven’t started yet and he’s 10 probably when he goes to high school I will but I will base it on what I can afford, maybe 5 or 10 a week and it will have to be earned with housework and help etc

[michael888]

I give my children money for doing various chores. What they decide to spend it on is up to them, but they have to understand that once it's gone, it's gone.

That said, I try to guide them into saving for something that they want and to also save some for a rainy day.

[Marg2k8]

I gave my children a small amount of pocket money and sometimes paid them for jobs such as cleaning the car.

[HannahLI]

We are a bit sporadic with pocket money as they often get money from grandparents. I don't limit what they spend it on my theory with it is that its their money and the only way to learn is either to love what they saved for and be glad of it, or to regret their little plasticky purchase and learn for the next time.

[Cailin7]

£5 per week, which they usually put into their savings account. or accumulate for cinema or to buy themselves stuff.

[Cl90]

I hope to avoid the pressures of too much pocket money, but currently DS is given a small amount of money if he helps to sweep the floor or tidy his room. He is only 4 but it has worked so far.

[jkell268]

Let children make their own choices, to help them to learn that you 'can only spend it once'.

[littlemonkeyz]

My little boy gets £2 a week. He has to earn it by helping out around the house. He likes to save it up for months on end so that he can buy Lego!

[xcxcsophiexcxc]

Think for chores it teaches responsibility and reward

[southernsun]

We give our ds £5 a week if he helps with chores. We then encourage him to save it until he has at least £50 which he can then either spend on something or if he puts it in his savings account we double it for him. Encourages him to save and works for us.

[happysouls]

I think there are two sides to pocket money that are important for a child to learn. 1 is that money is earned and it is hard to earn. 2 is that money is easy to spend and that you need to make sure you're spending it wisely or saving it.
It is vital that kids learn to budget properly as they're growing up!

[RiSo]

My boys are 9, 7 and 4 and don't get pocket money yet, they don't really understand money either and I'm happy for it to stay that way for a little while longer. There will be enough time for them to worry about money in the future!

[mave]

They get £5 a week but have to earn it by helping with chores and good behaviour!

[whitbyranger]

They do not get a set amount at the moment, but just have money when they ask. However, I do think it is important that children learn the importance of money and will be introducing a set amount soon.

[ecomousey]

No more than their friends, no less than their enemies.

[lhlee62]

My kids are still a bit young and have no real concept of money, they are 5 and 6 at the moment. I am probably going to wait until they are a little bit older and then give them something for helping around the house, only little jobs.

[helly27]

We have never given any

[MrRichTea]

Not too much, try to teach them to save / budget for things they'd like