Research indicates that children who manage their own pocket money tend to face fewer financial burdens in adulthood. The question, however, remains: what is the right amount of pocket money to give to kids at different ages, and when should you stop?
Deciding when to begin and cease pocket money allocation is a personal choice. It's advisable to initiate the practice once children grasp the concept of currency. Typically, parents start at around seven or eight years of age and conclude the process by age 16, when teenagers are capable of earning through part-time employment.
How much allowance should you provide?
Our guide to pocket money aims to assist you in determining the ideal allowance for your offspring. Based on several studies, children between the ages of 8 to 15 are suggested to receive about
8.75 weekly. It's essential to note that these amounts should be adjusted according to the child's age. Our guide offers specific recommendations for various age groups, but these figures should serve as a benchmark rather than a strict rule.
The Importance of an Allowance
Financial literacy is rarely covered in school syllabuses, making it crucial for such education to begin at home. An allowance is an excellent means for children to learn financial responsibility. They must make choices about their spending priorities, whether on sweets, Roblox, or Lego. Saving for substantial purchases is a skill that must be cultivated, and opening a child's bank account can reinforce financial education.
Many banking institutions provide junior savings accounts for those under 12 and special accounts for teenagers, though a standard account in a child's name is also an option.
Conditioning Pocket Money or Offering Unconditional Allowance?
Whether an allowance should be conditional upon the completion of chores or behavior is open to parental discretion. A consistent income teaches about the regularity of managing money, while others argue against rewarding unfavorable behavior. Alternatively, screen time can act as a currency more impactful than money. Offering screen time incentives instead of cash can promote financial responsibility without associating allowance directly with household chores.
Suggestion: Selling Unused Items
Encourage your children to sell items they no longer need. Utilizing platforms like eBay or Momox can be instructive in money management and instill environmental conscientiousness...plus, your living space gets relieved of clutter.
Digital Allowance Guide
With mobile games generating significant revenue - 2.7 billion euros in 2021, to be precise - a shift towards digital allowance is pragmatic. Cash is often misspent, whereas digital funds, such as gaming gift cards for platforms like Steam, Nintendo or PlayStation, provide a safer and more relevant medium for financial independence. Gift cards also extend to online shopping and entertainment, offering kids freedom to spend their pocket money on Amazon or Twitch.
In our pocket money guide, you'll find tailored recommendations for your children's allowance.
