How much pocket money should you give your kids? This is a question that many parents ask themselves. There are a lot of different opinions on the matter, and it can be tough to decide what is suitable for your family.
This article will explore some of the factors you should consider when deciding the amount of pocket money to give your children to have their own money. We will also offer some tips on how to teach them responsible spending habits!
Why is it Called Pocket Money?
Giving pocket money is a term used in the United Kingdom to describe the small amount of money given to children by their parents regularly. While the amount of pocket money varies from family to family, it is typically enough to cover the cost of small items or activities.
The term “pocket money” is thought to have originated in the 18th century, when it was common for children to carry around a small purse or “pocket” filled with coins.
Today, pocket money is still a popular way for parents to help their children learn about money management. Parents can teach their children how to budget and save for future purchases by giving them a regular allowance.
Additionally, parents can use pocket money to reward good behaviour or good grades. Ultimately, receiving pocket money is a tool that can teach children about the value of money and how to be responsible for it.
How Much Pocket Money Should You Give?
There is no single answer to this question. The amount of pocket money you give your child should depend on several factors, including their age, responsibilities, and your family’s financial situation.
If you are unsure the amount you can afford to give, you could use a budgeting app to help you work out how much is feasible to give your child. However, the amount you give shouldn’t depend solely on budget.
For example, younger children may only need a few pounds per week to spend on pocket money items like sweets or toys. On the other hand, older children may need more pocket money to cover the cost of activities like going to the cinema or buying snacks at school. Additionally, children who have chores or other responsibilities around the house may receive a higher allowance than those who do not.
Ultimately, the amount of pocket money to give your child is your decision. However, it is essential to consider all of the abovementioned factors before deciding.
In addition, be sure to talk to your child about their pocket money and what they expect to do with it. By doing so, you can help them develop healthy spending habits!
What is the Pocket Money Average in the UK?
According to Statistica, families reduce the cash they give their kids. For 2021 the average weekly amount of pocket money was £6.48. This is the lowest amount since 2015, when it was £6.20.
What is the average amount for a 13-year-old?
Rooster Money advises that by 13 years old, the amount of weekly allowance should be raised to £7.18, so if you take the average as £6.20, it’s an increase of nearly £1 a week or £4 a month.
What is the average amount for a 16-year-old?
This is a good question to discuss with your kids. At 16 in the UK, they can legally work and earn an hourly rate. Depending if you are comfortable with your children starting work whilst studying should be discussed before giving an increase in any pocket money.
In other words, 16 is an ideal age to stop pocket money.
Pocket Money is easier than ever in a Digital World
One in five parents gives their children pocket money by bank transfer according to research done by Barclays. Traditional money boxes are now the minority. With you now being able to set up a bank account from age 6 with some banks, it’s no wonder UK children are receiving cash into savings accounts.
You may remember receiving pocket money when you were a child, and if it was anything like me, it was coins once a week. Gone are those days, and we are now in a world where pocket money and teaching your child have become a lot easier if you decide to take advantage of some of the digital platforms and pocket money apps out there.
Some of the best pocket money apps allow you to:
- Give your child a prepaid kids card that allows them to spend money like a normal debit card.
- Automatically give your child pocket money each week or month without you having to remember.
- Decide the amount of pocket money your child gets based on their age, why they need it and what you can afford.
- Get your child to perform household chores around the house to ‘earn’ their pocket money as adults do with work.
- Automatically top up their pocket money piggy bank’ when they perform extra chores or go above and beyond what is expected of them.
- Set pocket money goals for your child, like saving up for a new toy or bike so they can learn about delayed gratification.
- Financial Education: Teach your child about responsible spending from an early age by setting limits on what they can spend their pocket money
Is Pocket Money a Good idea?
Pocket money is a good idea for several reasons. First, it can help children learn about money management and the value of money. By giving them a regular allowance, parents can help their children save for future purchases and learn how to budget their funds. Pocket money can also be used to reward good behaviour or good grades.
Some companies have made it easier, too. With banks like Starling, you can even set up a children’s prepaid card, which attaches to your main account. This enables you to offer a safe way to give your child cash in a safe way for them to spend.
What are the Disadvantages of Pocket Money?
While pocket money can be a helpful tool for teaching children about money, there are also some disadvantages. For example, pocket money can create a sense of entitlement in children.
They may expect to receive pocket money even if they do not perform their chores or meet their responsibilities. Additionally, pocket money can lead to arguments between siblings if there is not enough to go around. Finally, pocket money can be a source of financial stress for parents if they struggle to make ends meet.
Despite these disadvantages, pocket money can still be a valuable tool for teaching children about the value of money and how to manage it responsibly. Ultimately, whether or not to give pocket money to your children is up to you.
If you’re thinking of introducing pocket money to your children or looking for ways to make pocket money work better in your family, here are a few tips to help you get started.
- Talk to your children about pocket money. Please explain why you’re giving them pocket money and what you expect them to do with it.
- Set pocket money rules. For example, you could agree on a chore that your child must do each week to receive their pocket money.
- Be consistent with pocket money. Try to give pocket money simultaneously each week and stick to the amount you have agreed upon.
- Help your children save. Please encourage them to put some of their pocket money into a savings account for future purchases.
- Review pocket money regularly. As your children grow older, you may need to adjust the pocket money you give them. Likewise, if they are not following the pocket money rules, you may need to reconsider giving them pocket money.
The Bottom Line
So, how much pocket money should you give your child? The answer to this question may vary based on your personal circumstances and your child’s age.
But, as a general rule, aim to give your child enough money each week to purchase some small treats or items they need for themselves. As we have discovered the average amount in the UK is £6.48 but it’s an average and age and other factors play a role.
Doing this will help teach them financial responsibility and how to budget their money. Have you started giving your child pocket money yet? If not, what are you waiting for? Let me know in the comments below how much pocket money you plan on providing each week.