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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[KJB1978]

My daughter has a list of jobs to do for different money. If she wants to do it she can and if not she doesn't earn anything.

[lnesbitt81]

I think pocket money can be a good idea to give them a little experience in handling money, but only a little and it has to be 'earned' through chores and behaviour. That might sound harsh, but it's only guidance and isn't used as punishment!

[sm2012]

I give my two eldest pocket money on the first Saturday of each month. My 11 year old gets £6 and my 9 year old gets £4, it goes up a £1 each birthday. When they get to 13 I'm planning to open a current account for them and pay a bit more into it each month and show them how to check their spending online and encourage them to save some each month too.

[BL0SS0M]

I’m struggling to come up with a pocket money solution! It’s great to teach kids the idea of saving and making decisions about what to spend it on but I hate the idea of linking it to chores! I think that it should be a given...everyone should help around the house l

[twinklenicci]

My children have always done jobs which are age appropriate to earn pocket money. My 5 year old brings down the dirty washing, helps feed the dogs, tidies her toys which she earns a magazine and sweets for. My older children are now 18 and 19 and have their own income but even when thew were at college and getting pocket money they had to complete jobs in order to earn it

[grantd1]

it's good to give

[CGORST]

The important thing for my kids to learn is about earning money. In order to get their pocket money they have to do jobs around the house - nothing spectacular and it doesn't even matter that I might have to do it again once they've gone to school but they don't get money for doing nothing. If they do loads of work, say doing their grandma's garden, they'd get a bonus.

Once they have their pocket money it's theirs to spend as they like, even if I don't really like what they are buying. If they spend it all on sweets and then want something else but they don't have the money - tough. That's how you learn to budget and manage your money.

[janeyf1]

I have been increasing the amount a little each year, and it is currently £5 but I am encouraging on how to look after the money and not to throw it away on sweets

[DenCop1]

I think it's important for kids to be given pocket money so they learn how to budget in later life.
I keep it to a sensible level and raise it with age and responsibility. My 13 year old gets £10 a week but understands this is to cover any trips to the cinema etc, make up and also for saving towards holidays etc.
Whereas my 6 year old gets £4 a week and saves £2 of this towards holidays and days with friends and can spend the remainder on whatever they choose.

[emmmaaa26]

We tend to give £10 a month but it may be less according to behaviour. Im trying to teach them to be responsible and be kind to others in order to be able to gain something extra in return.

[jazzitup]

My little one only gets £2.00 a week but is very sensible with it, some spen, some saved.

[AuFinch]

i like pocket money as it gives our son the experience of spending and being without money! just like life. I wont say what he is getting as it is probably a lot less than most kids, but I can tell you that over the years he has become responsible with money, and we feel now that we would not have any worries about him as an adult, as he seems to understand how loans work too and how much more money you need to pay when you have interest on top. I think the aim should always be that when you give the pocket money its a way of learning to handle money - so talk about the times when it goes wrong and when it goes right!

[bubbleybooboo]

My children dont get pocket money as such but they do get rewarded money for things they do. Its not regular though. If they do something such as take the bins out for the week the at the weekend we will give them some money for helping.

My eldest has just started college and she babysits for us so we are able to go out and do things like christmas shopping for example. We make sure shes given some money as areward for her help. THis isnt every week like as above.

They all have a bank account and a saving pig and its up to them what they do. My youngest saves hers in her pig then when shes got to £5 she likes to take it to the bank. They tend to save money from birthdays and christmas for purchases but money they are rewarded for helping as and when, particularly the elder two, they use for going out with friends and things

[mo3733]

pocket money should be earned for it to be appreciated

[KiteMarked]

My lot get £2/week, which is admittedly not a lot, but I buy them everything they need and give them money here and there to go out with friends, so they really don't need a lot anyway. We use GoHenry so they have the experience of using a bank card (admittedly, this service is expensive and I need to look into changing it).

Not sure how best to handle pocket money when they are older, seems a bit infantile at age 16+....

[Sparklepants3]

We have chore rotas and everytime they do one it's 50p added to the total.
There are 20 chores for the two of them to do between them. Things like washing up, hoovering etc

[holey]

We've never really done regular pocket money but make sure they always have money when they're going out or want/need something specific. When they were younger, they were not interested in money and when we tried regular pocket money, we'd just find it left lying around, not used or even put away. As we are self employed we don't have budgetable income. Some weeks we're flush, others we're skint so we found on the skint weeks, pocket money was hard for us to find- especially when they didn't seem to need or want it.
We make sure they are involved in family finances though- they can see how we budget, what we get, how we spend and what we save so they are learning through that about how finances work. It works okay for us- it may not be the best way to teach them but it's evolved that way!

[SSCRASE123]

Not really found the right balance yet. We don't just give money for nothing but he isn't really that bothered for doing some chores/helping out for a few extra pounds either.

[footdust]

My daughter get £50 a month by bank transfer (teenager) plus a clothing allowance of around £200 every 3-4 months depending on what needs replacing.. I buy all school uniform and sports kit and any ''special occasion'' clothing. in addition. If she wants more money she needs to workfor it. - not normal jobs like the dishwasher and cleaning her own room as that is
expected as part of getting an allowance in the first place. )

[prwilson]

I think having pocket money as a child help me learn about money, the value of money and how to save.

[shellywkd]

My daughter gets £5 a week and she is 14. She uses it to top up her phone and buy make up and treats. She saves it up if she wants something more expensive it helps her learn money management

[Ganne1]

We never gave much pocket money. If they needed something we bought it for them. But then Christmas becomes oh, such a wonderful time when they can have what they've only dreamt of.

[AR2012]

50p for weekdays 75p per weekend with extra if they help with the household chores. Also encouraged to save their pocket money up.

[Elizasmum02]

my daughter doesnt get pocket money. she gets a treat when sshe gets good grades in school and at then end of the month if shes been good ill give her some money which i expect her to be reasonable with, shes really good and doesnt waste it, i buy what she needs but would prefer she learns to save money

[devito92]

Pocket money should be a small amount and only given when its earned. I mean around the house for good behaviour and helping out