Let’s talk pocket money with Money Advice Service

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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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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.

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!

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

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.

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

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.

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.

My boys 9 and 4 do not get formal pocket money.
They do get money paid in to a child trust fund (9) and an ISA (4) each month.

They do get bought sweets and small toys for good behaviour (OK, more realistically) lack of bad behaviour / bribery.

I sporadically give my 9 year old a pound or so when she has done a job (washing up, hoovering...etc). She doesn't really need cash at the moment so we give other random treats like a book, toy car or other small toy for doing well at school.

When I was little I didn't get pocket money at all. Initially with my own children I didn't give them pocket money either but obviously gave them money when they wanted to buy gifts for friends or needed contributions to school events, etc.
My children began to get pocket money regularly when they began senior school. We had a discussion about why they were getting the amount they got and how they could earn more by doing chores at home and doing well at school. It seemed to work ok.

My teenage son gets £5 per week, but it's on condition that he does certain things. Eg I will reduce it by 50p if his room is untidy, or he hasn't done homework, or he's cheeky etc. A few instances of naughtiness can result in him losing quite a bit of his pocket money, so this method seems to help with behaviour!

I also bribe him with school work and exam results - he gets extra if he does well with those and that has worked great as an incentive.

Pocket money didn't crop up till early teens & then it was do some chores e.g wash car, cut the grass & you'll get £5.

I pay my child £3 an hour for jobs in the house

DS is just 4, so doesn't have set weekly pocket money just yet. He does have a piggy bank in which he delights putting in the pennies that he finds :D

I have wanted to save up for him from an early age though but money's a bit tight. I tend to put the odd five pound note aside in an envelope throughout the year, with the hopes that I can put away £50 in his savings account each year on his birthday. This may all change as he gets older and able to manage his savings etc himself, but for now, though it's not a lot, it's something small and positive I can do for his future.
I don't think he'll get a set allowance until he starts school and can demonstrate an understanding of the concept of money (it's pretty vague right now!)

I used to get pocket money as a child, I think it was about 50p a week for ages. Occasionally we could boost this with additional chores/odd jobs, but not regularly.
Once we hit mid-teens we got £25 a month paid into our account, on the understanding that any clothes we wanted/needed was to come out of this money (tbh my mum just hated shopping, so this was done out of convenience for her rather than her actively teaching us any money management skills lol)

My twin boys both have a savings account at a bank which they take £8 a mth in so £2 each a week. They also have a lifesavers account at school which they choose what they want to spend their money on and how much they want to deposit. They have to do small chores and spellings in order to earn the money. I do believe it helps prepare them for when they are older and gives them a good understanding of money and spending (well I'm hoping it works)

We don't give pocket money to our two children at the moment but have been thinking about it (they are 6 & 3). I think we will start small £1 ish a week and they can decide if they want to spend it or save it for something.

I struggle with this a little bit, I do think pocket money for kids is a great way to learn about saving for things you want, but we haven't started giving DD (6) pocket money yet as she has a decent amount in her money box and doesn't seem to want anything. She's also made a fair amount from the tooth fairy in the last year! Perhaps I need to make a conscious effort to cut back on buying her things so that she can start making those decisions herself.

£5.00 a week to be spent as liked, more money allowed for little jobs around the house and garden, works this works well and will increase with age. Things are so expensive now

Mine will get pocket money but only when they have done jobs around the house. They won't get it just because they want some money. They need to learn the value of money and hard work

I think pocket money should be earned, as that's the way it is in real life, but simple tasks ie emptying the dishwasher, walking the dog. It can be topped up by doing extra things like walking the dog.

it brings about responsibility.

We started giving pocket money when they started school. Encouraged them to save some, and when we went on holiday gave them a little extra. This helped to reduce the "can I have?' when we were out, as they had their own money. They quickly learned to manage their own money .

I give my 16 Yr old £50 a month, my 14 Yr old gets £25 a month and the 6yr old gets £5 a month.
The older two get their pocket money on their nimbl cards. Our 6yr old buys a magazine and a packet of sweets with her money.
They can earn more money by doing jobs around the house or walking the dog.

I think children should be given pocket money as soon as they're old enough to ask for things in the shops and understand what pocket money is. By teaching them to save up for things and offering them the opportunity to earn more pocket money for chores you're setting them up with skills they will need later in life. I think it's important that children have their own things and the ability to save up for things they want.

They have to earn it like I did. So that involves chores