Pocket money is a contentious topic. Some people believe that it is essential for children to learn how to manage money, while others think that it just encourages them to spend unnecessarily. This blog post will explore the benefits of pocket money for kids. We will also highlight some tips on making sure that your child manages their money responsibly.
Related: How much pocket money should we give our kids?
Should children get pocket money?
There are key arguments for and against giving pocket money to your child. On the one hand, some people believe that pocket money is essential for children to learn how to manage money. This is particularly true if they are given pocket money that they have to use to cover specific expenses, such as buying lunch at school or going to the movies with friends. This can teach them the value of money and how to budget effectively.
On the other hand, some people argue that pocket money is unnecessary and encourages children to spend it unnecessarily. They believe that children should only be given money when they need it, such as for buying school supplies or paying for extracurricular activities.
So, what is the right answer? The truth is, it depends on your individual situation and what you believe is best for your child. Here are a few tips to help you make the decision:
- Talk to your children about money and how it works. This will help them understand why they are receiving pocket money and how they should use it
- Set clear rules about what the money can be used for. This will help your children to stay within budget and not spend impulsively
- Help your children to save their money. This can teach them the value of delayed gratification and how to save for a specific goal
- Monitor how your children are spending their money. This will help you to ensure that they are using it responsibly and not wasting it on unnecessary things
There are many reasons why pocket money should be earned. But, ultimately, whether or not you give your children pocket money is up to you.
When should kids start getting pocket money?
This is another area where there is no clear consensus. Some parents choose to give their children pocket money from a very young age, while others wait until they are older. There are pros and cons to both approaches.
Giving pocket money to younger children can help them to learn about money management at an early age. It's important to set clear rules about how the money can be spent. Otherwise, children may not learn anything from having pocket money.
Waiting until children are older to give them pocket money can help to teach them about responsibility. They will need to save up for specific items or activities and may even have to work for their money. But, this approach can also be more difficult to manage, as older children may be more likely to spend impulsively.
Again, it depends on your situation and what you believe is best for your child. Whatever you decide, make sure that you talk to your child about money management and set clear rules about spending. This will help them to spend their money wisely.
In the UK, pocket money is usually paid on a Friday (37%) or Saturday (29%), according to the Youth Economy Report. The amount that children receive varies but, on average, seven years-old children earn £3.52 per week.
Related: What age should I start giving pocket money
What are the advantages of getting pocket money?
There are a few reasons why pocket money is beneficial. Firstly, it can teach children about the value of money and how to budget effectively. Secondly, it can help them to save up for specific items or activities. Finally, it can give them a sense of responsibility and allow them to make their own spending decisions.
So, if you are looking for a way to teach your children about money management, pocket money is a good option. It can also help them to learn the value of delayed gratification and save up for things that they want.
What are the disadvantages of getting pocket money?
While there are advantages to giving children pocket money, there are also a few potential disadvantages. Firstly, it can encourage them to spend unnecessarily. Secondly, it may be difficult to fit into your household budget. Finally, it can lead to arguments if children are not given the same amount of money as their siblings.
This means that it is important to weigh up the pros and cons of pocket money before making a decision. If you decide that it’s right for your family, make sure to set clear rules about how the money can be spent. This will help your children to use their money wisely.
Should I just give my child pocket money or make them earn it?
There’s no right or wrong answer to this. There are pros and cons to both approaches. If you give your child pocket money, they will learn about money management and budgeting. But, if you expect them to earn their pocket money, they will learn the value of hard work and delayed gratification. You should also keep in mind that there are many ways to reward your child.
A good option can be to adopt a mix of both approaches. For example, you could give them a small amount of pocket money each week and then top it up if they do extra chores around the house. Apart from other benefits of giving kids chores, this will teach them both the value of money and the importance of hard work.
How much pocket money should I give?
According to the Youth Economy Report, at the age of 7, children get an average of £3.52 per week, while 18-year-olds get an average of £14.79 per week. Overall, in the UK, the average amount of weekly pocket money is £7.62.
Of course, the amount of pocket money to give your child depends on your individual situation. You may want to give your child a smaller amount of pocket money each week, or a larger sum to give them each month or once they reach a specific milestone (e.g. completing their school year). Alternatively, you could focus more on paid tasks and chores.
It ultimately depends on your child’s age, what they want to spend their money on, and your family budget.
How should I give my kids pocket money?
Now you know the pros and cons of giving your child pocket money, you can consider how to give it to them. With GoHenry, you can give your child their pocket money in a way that is convenient for you and them. You can choose to send them money and set paid tasks, which can be managed with the GoHenry pocket money feature of the app. When used in conjunction with their GoHenry kids debit card, this means that they will always have access to their money – and be able to check their balance before they spend.
You can also use your parent logins to keep track of how much pocket money your child is receiving and how they are spending it. This can help you to ensure that they are using their money wisely. Your child will also benefit from in-app Money Missions, which are interactive games and quizzes designed to accelerate your child’s financial education, as well as the ability to set savings, add spending limits and rules, and receive notifications when your child spends money using their GoHenry card.
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