Pocket money can help your child understand the importance of making wise financial choices at a pretty young age. If you’re not sure how much pocket money you should give them, you’re not the only one dealing with this dilemma – and our brief guide will help you make the final verdict.
Take your child’s age into consideration when giving them pocket money. Older children usually need more pocket money because their needs increase over time – and so does their ability to responsibly handle the money at their disposal.
Age shouldn’t be the key factor you rely on because kids of different ages can have different levels of financial responsibility. Help your child understand the value of money before entrusting them to spend it on their own.
Your Financial Situation
Even if your child is old and responsible enough to receive more pocket money, you won’t be able to give it to them if the money simply isn’t there. Take your own financial situation into account and see how much money you can set aside.
Needs & Goals
If you notice your kids aren’t spending their money in vain and they’re working towards specific goals or saving them instead, consider rewarding their good behavior with a small pocket money increase.