How Much Pocket Money Should I Give?

We have pulled together some tips and averages to help give you a steer. Remember, these are just indicative – pocket money doesn’t have to be expensive. Giving pocket money in the right way (however much) can teach your kids skills and confidence in money matters and give them immense satisfaction, especially if you encourage your kids to earn it! Based on NatWest Rooster Money users, here are the averages by age of pocket money given by week.

Budget what you expect your children to cover with their pocket money. It is surprising how small things can add up! One way of working this out is to look at “Wants” versus “Needs”. You can decide what needs you want to cover and what wants they should be covering themselves.

It can also be a great way to get your child involved and thinking about budgeting. Getting them to tot up all the things they get a week from you by way of sweets and other treats will show them how much you spend on them. If they have to cover their own chocolate and magazines, you can bet they will start thinking more carefully about how they spend their money.

Set out some conditions. Giving money regularly and with conditions keeps your kids focused and able to budget.

You can create conditions which could be anything from successful completion of a reward chart to a batch of basic jobs you’d expect your kids to do as a ‘minimum’ each week. Agreeing a small amount of ‘income’ for these conditions each week gives your child something to focus on and lets them anticipate what they should be doing with their cash when they get it.

Remember: earning pocket money is exciting! The Lottery would be pretty boring otherwise.

“Earning” money is hugely satisfying. While a regular allowance can be given with conditions, you can inspire your kids to earn some extra cash! You might stipulate emptying the dishwasher is about contributing to the family and a requirement of an allowance. Cleaning the car or tidying the garden can be a bonus! Remember, small amounts are fine, your kids can develop their negotiation skills as they go!

Managing pocket money is really easy with Rooster Money’s app. It allows parents and children to see and oversee pocket money digitally. Find out more about our virtual pocket-money tracking app here.