Pocket money. Do you or don’t you agree with it? I feel like a well thoughtout plan for giving children pocket money can enable them to gain a better understanding of the value of money and can teach them invaluable skills in budgeting and saving. Below I have listed a few tips on how to organise pocket money so it is a positive part of your child’s development.
- Starting at the right age is important. If they don’t understand counting and numbers yet then pocket money won’t mean much to them. I think 5 or 6 is a good age to start.
- Introduce the idea of pocket money over time. When out and about have conversations about how much things cost. For instance their favourite snacks or a trip to the cinema or a new pencil case.
- Parents seem undecided on the idea of paying their children to do chores. If you do decide to go down that route, I feel it is important that the child is clear what chores will earn them money and what they are expected to do as part of everyday life without being paid pocket money for doing it. Perhaps giving your child a set amount of pocket money each week and then letting them earn a little extra through completing their chores would work well.
- I once heard of an idea of having different jars for a child’s pocket money to help them learn the value of money. Having one for savings, one for spending now and one for donating to cause of their choice.
- Make sure you are consistent and give out pocket money on the same day each week and stick to your rules of how they can earn any extra.
- Let your child make mistakes. This is how they are going to learn. When they make a mistake and spend all their money and then can’t afford something they want, try not to give in and buy it for them. It’s an important life lesson and will encourage them to think more about how they spend their money in the future.
Whilst on the tube recently I saw an advert for goHenry. GoHenry is a debit card for children aged 6-18 years and gives parents and children control of pocket money in a cash free way. The card is connected to an app which allows children to budget and save for things they want and also see how much and where they are spending their money. It also lets the parents decide where the children can spend their money and how much they can spend at a time. I think it is a brilliant idea that could help ease the stress of sorting out pocket money.
Let us know your top tips when it comes to pocket money. We’d love to know how you make it work in your family.