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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I’ve literally started talking about money this week with my son and daughter. They both have their own bank accounts into which I deposit cash each month.
My stepdaughter is allowed to have £5 a week for anything she wants from the shops. We talk to her about money. My mom used to have a savings pot in the house when I was a little girl and she encouraged me to save money for the future.

We occasionally put money in DS money box, but at 4yo if we gave him weekly money he would either fill himself with sweets or the house with charity shop toys. We do sometimes give him a little money of his own to spend if we go into town.

Pocket money isn't a big thing here, but the kids earn some spending money by doing well at school and some little age related jobs around the house. Works well, because instead of nagging me for money, they do more jobs around the house!!

I put £50 into each child’s account a month. They are 5 and 6 years old. I reward them with £1 a week if they do well in school and good behaviour. They can chose to use this in the sweet shop and pick whatever they want.
I use to get £1 a week as a child and it went upto £5 as a teenager.

We do not ‘pay’ the children to do chores. It is expected because the live in our house too. We pay money into their accounts for the future and make sure that they are well provided for.

They have lunch accounts which gives them experience of money management. Use it all in the first week and they have to make packed lunches for the rest of the month!

We don’t give pocket money yet, as the children are still very young (they are in infants and preschool). I will start with the oldest soon though.
They Often get money from relatives when we visit or the odd gift so we haven’t had the need yet.

DC1 (5) gets 50p a week provided certain chores are done - bringing their dirty dishes into the kitchen after meals. Helping with tidying up toys every evening in the living room and bedroom. They are allowed to spend it on what they choose - I'd rather they had buyers remorse now than over big purchases later! We have also discussed saving for more expensive toys and why we can't afford to have everything that might catch their eye, so encouraging them to prioritise.

We don’t give our children pocket money, they contribute to tasks around the house because it’s their home as well and we are a team. They keep their money from birthdays and Christmas etc and can spend it as and when they wish. We put money in an account for when they’re older.

11 yo gets £6 a week. 7 year old gets £4. The older one has been saving like crazy for a laptop. She does jobs around the house, and for her grandparents too. Hasn't spent a thing... I'm really proud of her. We have bought her a laptop for Xmas anyway so she won't have to spend her own money. The little one however spends as soon as he gets the cash. Magazines and sweets. He does the odd job but isn't really bothered about extra money!!

Amounts depend on each childs age. Our eldest gets a basic rate with a bonus for keeping their room and wardrobe tidyish meaning they only failed to make an effort putting most things away once. We also offer other chances to increase their pocket money, such as clearing all the leaves up in the garden, drying the dishes if asked to do it more than once a week. We hope it gives them a work ethic and realise nothing in life is free.

I don't give pocket money to my 8 and 6 y.o. but grandparents give them £1 or £2 between every 3-4 weeks or so. They don't really have anything to spend it on, so they end up saving substantial amounts (often more than my own disposable income!)

I don't think it's a good idea to have much financial resources without also having responsibility to use them well. Pocket money means it's easy to get into the habit of spending your money on things you want, rather than using it for 1. Giving away, 2. Fulfilling your financial responsibilities and only then 3. Things you want but don't need. Ideally, I wouldn't have family members routinely giving our children money, but I'm not passionate enough about the principle to try to stop them.

We've never required our children to give away part of their money, but we model doing so ourselves, and I have one child who does so enthusiastically, and one who is less keen. We had a spell where they spent it all on junk eg stickers they didn't really want, but we managed to coach them out of that, thankfully. Our household is definitely happier when everyone (adults as well as children) has less stuff rather than more.

My younger two (y7 and y10) get £20 a month pocket money which I pay directly into their bank accounts. It's then up to them to use it sensibly, or save it, whichever they prefer. My youngest prefers to save up for something he wants, but the elder one likes to go to Costa with his friends etc, which is fine as he realises that once his money has run out, he won't get any more until the following month.
We do also pay for their phones (SIM only contracts at £5 or less per month) so I suppose the monthly allowance is more like £25.

My kids get pocket money linked to their age, 10 years £1 a week, on their birthday they get a pay rise,11years £1.10!
They have bought into this, they do get birthday money & cash gifts or vouchers from family so do have enough if they save up long enough.We give them opportunities to make money such as weeding, window cleaning but the rates are quite low. Usually 1/2 hr work might generate between 50p-£1 .

Usually there is a fight to do these jobs so that they can go shopping or want to see a film.

This system has worked well with the older kids getting extra for bus\lunch & clothing\trainers money if they need it. Now they are older, they can even cut the grass. Our 18 year old shops at charity shops for clthes so that he can have more money to eat out with friends. They seem to value the small amount of money they have & hopefully can budget or save up for holiday spending.

My daughter is only 4 so doesn't get pocket money. We do save birthday and Christmas money for her though.

As a teenager I remember getting £5 a week and it felt like loads. I then got my family allowance when I was 16 and 17 and my elder siblings had left home. I remember saving up the vouchers in the book and cashing in about £200 to pay for a holiday.

We dont give pocket miney yet but they can earn some by doing chores. Usually 10p or 20p and they have a purse they put that miney in and a miney box that theu save coppers in.

I have two children 9 and 5 - neither receive pocket money yet. But we do offer our 9 year old £2/3 (she starts at £5 and we barter!) for helping out, like helping her little sister with her homework - and she only gets the money if the job is done properly. Her grandma always bungs her a fiver when she visits, which she often saves to spend on slime making stuff.

How much pocket money do you give your child/children? £25 a month

Do you set up a system where they can earn more if they do chores or do well in school? No system but the offer of occasional chores exists

What about what they can spend it on? Are there any limitations or do you try encourage them to save it for something big? It’s her money to spend as she chooses but we do discuss spending as a general topic

How much pocket money did you get when you were a child? I cannot remember but not much

And what age do you think it’s appropriate to start giving them pocket money? I think about 6 is ok. Once they can do simple maths

Mine don’t get pocket money but have a £2 savings account each week they put into. They don’t ask for money yet and can’t go and spend money independently but once old enough we will negotiate pocket money and chores

I put money into my daughter's isa

Mine get £10 a month. They're not expected to do chores for this but we do expect everyone in the household to pitch in a little to help each other. I also don't intend to reward exam results directly, my parents rewarded me for effort and working hard, rather than the end results, and I think I will do the same.

We help our Dd to save by putting all our loose change upto 50 pence pieces in her piggy bank. We give her the money to place inside so she can see how much. It saves up for when we go on summer holiday.
Then on holiday she can spend it on whatever she likes - Ice-creams, toys, anything.
She also gets given larger money gifts which we then let her know she can use for big presents for herself, that we're not willing to purchase.
I should add Dd is only four and a half. She's slowly learning what the coins mean and as her counting grows it helps her to understand quantities.
It also helps her to see why she can't have everything immediately, so teaches patience to.

DS is only 3 so doesn't get pocket money yet, but will get to decide how some of his money will be spent after Christmas (he has a bank account I'll put the rest in). I'll take him to the toy shop and help him work out what he can buy for his money. I want to start early because he seems to 'want' everything but once he gets it he doesn't care about it anymore- if he understood the limitations of money a bit better I hope this will change.

7 yr old dc

They get £2 a week. They have to help with small chores (clearing table, making their beds etc)

They can also earn an extra £1 if they have gone above and beyond with kindness / helpfulness in school or home / done something spectacular that week

DS (11) gets £2 a week, plus his phone paid for (£5 a month bundle)
I have been giving him cash but I have just realised that he is now eligible for his own curent account with debit card so I think I will get him one...partly so I can set up a DD as I never have cash on me!
Also I think it would be really good for him to get used to having a curent account - checking his statement and all that stuff.
He's always been very responsible with his money, saving well and making sensible choices about what to spend it on.