Pocket money is an age old question: how much, how often, for what and at what age? There is no right or wrong answer, and what you decide to do will depend on your family dynamics and your personal experiences.
Using pocket money as a chance to give money value is important. It's essentially the first steady income your child will have, and it's a great chance to instil in them a value that lasts a lifetime. We asked Alex Zivoder at goHenry for advice on how to make the most of giving your children pocket money.
Give pocket money in regular, small amounts
The best way to give your children pocket money is in small, regular amounts, so that they have a cash flow to manage. This will help them learn to budget to make their pocket money cover everything they need and want to pay for.
It's really important not to cave in and pay out extra if they do run out of money before their next payment. Doing this will not help them manage their money when they're older and independent. If you encourage them to make their money last, they'll learn to prioritise what's important to them and what they can live without.
Start giving a little bit of pocket money when they're young
Obviously as the parent, you know best what's right for your child. Studies by Money Advice Service suggest that kids start to form money habits from the age of 7. By this age they're also starting to understand that money can be exchanged for goods. So if you're unsure, giving a little bit of regular pocket money at 7 or 8 years may work well.
Let kids make their own mistakes
It might be hard to watch, but letting kids be independent and make their own choices about what to spend their money on is a great way pocket money can add real value to their financial education.
Let your kids buy things that you (as a wise parent) know they'll regret later because it's their money, and they need to understand how to think responsibly about spending it. Making these mistakes when they're older is only more painful and likely to have more riding on it than when they're young.
Set children tasks so they can earn their own money
Many parents choose to set their children tasks so that they can learn to earn their own money. This teaches children that they have to work hard to earn money and will help them appreciate their money a lot more knowing the hard work that went into earning it.
They'll also get to grips with the risk associated with not working hard and not completing tasks they're given: no money.