Pocket money can be a contentious issue, with kids coming home and informing parents that their best friend gets twice what they do weekly. Ultimately, the amount you give will be determined by your family finances and outlook, but there are some ways to work out whether the amount you’re giving is fair or overly generous. Check out this advice to help you navigate this tricky subject.
If you are going to give your child pocket money, do remember that prices are not the same as when you were a kid! It is tempting to use the amount you received as a ballpark figure for your kids, but this won’t let them buy much these days. However, it does depend on what you think they should be using their pocket money for—a small amount to buy a few sweets and treats, or if it can be saved over the longer term (a good life skill), your kid can buy something more substantial.
What Do Peers Get?
While you don’t need to use the amount that your kid’s friends get as a benchmark, it can be useful to know what other parents consider an acceptable amount of pocket money for children the same age as your child. If you’re giving much less than what friends are receiving, explain the reasons why so your child doesn’t feel too hard done by.
What Are They Learning?
Are you just handing over the money at a certain time each week, or is your kid learning something from the process of receiving pocket money? Whether you help them learn to save it, provide it once they’ve done a few chores around the house, or help them learn about the value of money, giving pocket money can be a great way to help kids understand how money works.