Guest writer, Louise Boyce is a mum of three (Basil, 12, Sonny, 8, and daughter Inca, 5), Sunday Times best-selling author, blogger, successful model and influencer @mamastillgotit_
If you have kids, chances are they’ve asked you for money… I’m sure you’ve been there, in that supermarket or anywhere for that matter, when the ‘pester power’ pipes up asking for something.. whether it’s in the value of a gift at the shop, V Bucks for their computers or if they’re saving the money the tooth fairy sent them. Annoying? Yes? Were you so demanding as a child? No, me neither.
I believe teaching kids about money management is more important than ever in today's fast-paced world. Enter pocket money. To me, pocket money isn’t just a treat; it’s a valuable educational tool that I use for my kids (Basil, 12, Sonny, 9, and daughter Inca, 5) to teach them responsible financial behaviour in preparation for adulthood.
Giving pocket money is my way of introducing them to spending, saving, and managing their money. Pocket money gives them the power to make choices about their finances and fosters a sense of responsibility and independence. I’ve noticed that when they have their own money to spend, they learn to prioritise their wants and needs more carefully and start to understand the value of a quid or two. Classic example is when their grandfather bought them a magazine that had a toy attached to the front cover – the magazine was tossed aside whilst my son played with the toy. However, when my son bought the magazine himself, he kept the entire magazine squirrelled away in his bedroom and had more respect for it. It was his hard-earned money that came to fruition.
One of the things I love most about GoHenry is its ability to automate allowances. Time-starved parents like me can set up recurring payments, ensuring that kids receive their pocket money without any hassle. This not only helps pocket money stay consistent but also teaches children the importance of budgeting—after all, managing an allowance is a great first step toward financial literacy. I stand firm with the budgeting, too – if they go over their means, they need to wait until they have their allowance or need to do an extra chore.
My other big tip with pocket money is to incorporate chores into the equation. Adding paid chores is a fantastic way to instil a work ethic in children, and I’ve found it teaches my kids that money doesn’t just appear; it’s earned through effort and responsibility—a little bit of bribery, ha! The chores the kids do have different costs.. for example, simple tasks like taking out the bins, pay less, but others, which take more effort, give them a higher reward for their hard work. Chores like making the bed and putting clean laundry also pay out small amounts as they are very helpful for me, too! I’ve noticed that my eldest son really loves to take on more responsibility. He’s a little gentleman in the making! He bought me a bunch of flowers the other day, and it meant the world to us both! My husband has competition! Ha.
This real-world experience can significantly shape their understanding of money and its value, which I never really understood until I was in my adult years. Surely this is something they should be teaching at school?
So, if you’re wondering how to approach money discussions with your children, tailoring your conversations to their age and developmental needs is key. Here are my best tips:
Young Children (Ages 5-8): At this stage, it’s essential to introduce basic concepts like saving and spending. Help them set simple savings goals for small treats or toys by setting aside some of their weekly pocket money. I automate savings on GoHenry for my 8-year-old, so a portion of pocket money is allocated to a savings pot each week.
Tweens (Ages 9-12): This is the perfect time to introduce budgeting. Both my boys are in this age bracket, and they know when they can and can’t afford something they have their eye on AND know how to save up for it. I genuinely think they also love the idea of having their own prepaid debit card like GoHenry that can be used just like yours or mine… a sense of being ‘grown up’ if you like.
Teens (Ages 13+): As kids grow older, conversations need to shift to more complex topics like investing and credit. Help teens to manage their money independently while still under your guidance. This will pave the way for discussions about financial responsibility as they approach adulthood.
Reflecting on my own financial journey, I wish I’d learned certain money lessons at a younger age. For example, understanding the power of saving early could have set me on a path to financial security sooner. With pocket money, kids can set savings goals for things they genuinely want, understand the importance of delayed gratification and plan for their future. Hopefully, one day, my kids can save up for that holiday home I want in Ibiza! Hehe.
Additionally, learning how to track spending might have saved me from the pitfalls of impulsive purchases. Helping my kids learn to make informed financial decisions means discussing their £10 spent down at the sweet shop!!!
To conclude, pocket money is vital in equipping our kids with the skills they need for a financially savvy adulthood. Hurrah!
As parents, we have the opportunity to foster a new generation of financially literate individuals. We can make those lessons as engaging, practical, and impactful as we want, setting our children up for success in a world where financial literacy is more crucial than ever—and it’s also really fun.
