There is no right age to start giving your child pocket money, but most families start by the time a child is 10 years old and able to make good choices about spending money. But trying to work out how much, how often, and if there should be any rules, can be confusing. Here’s a guide to getting your head around pocket money.
Don’t offer pocket money until you are sure your child knows what to do with it. often they will have friends who get it or have seen it on TV and will ask you about it. Plan to start at about 10, but if you feel your child is responsible enough there is nothing to stop you giving it earlier.
Working out how much money to give your child can be made easier if you calculate it on an age basis. You can give $1 per week for every year of their age, so that they start at $10 a week and work up to $16, $17 or $18, until whenever you decide that pocket money stops. Mr you could go for 50c per year.
Some parents attach the allowance to some jobs around the house. This teaches a connection between doing work and getting paid. Make it clear to your child what your expectations are every week, such as doing the dishes, tidying their bedroom and, putting the rubbish out or mowing the lawns. You might like to build in the opportunity to earn more money by doing other jobs on top of their regular agreed ones. Some children will respond very favourably to earning more money this way.
Some parents believe that children should help out around the house with jobs without needing the incentive of pocket money to do so. If this is the case, then make sure you are clear about the arrangement. This also means you cannot withhold pocket money if jobs aren’t done.
When working out the jobs that are to be done, involve your child in choosing them. With several children in a house, it can be a good idea to make a list of the jobs which need doing and then let them take turns choosing one each from the list until they are all chosen. Children should also be free to swap jobs at any time if they grow bored and want to try something different.
Make sure you can commit to paying each week. Being consistent sets a good example to your child and it is an incentive to get them to do their jobs as agreed, on time. Some parents set up an automatic payment into their child’s bank account when they are old enough to handle one. others have a certain day of the week when the pocket money gets distributed, just like pay day.
It can be helpful to get your child to keep a record in a notebook. often, parents can forget if the pocket money has been paid and some children are not averse to taking advantage of their parents’ absent minds. It also helps your child to see how much money they are earning as it adds up week after week.
When it comes to spending pocket money, do give your kids some guidance. You should be taking care of basic needs like food and clothing, so anything they buy should be extra in the form of food treats or extra clothes. Allow them to make some mistakes, such as buying a shirt they’ll never wear or lollies they don’t like, as this teaches them about consumer awareness.
To teach your children the rewards of saving, encourage them to put their money aside for large purchases. You might like to help them open a bank account for their savings or offer to look after the money for them so that they don’t spend it on a whim.
As your children get older, you can give them more financial independence. Let them practise their budgeting skills by giving them a seasonal clothing allowance for winter and summer. They can spend this amount on their clothes, but first teach them to work out what they will need – otherwise your child might come home with a hugely expensive handbag and one t-shirt. once the list has been written out, help your child shop around and find the best prices for their items.
Some children are not materialistic and would rather give their money away to an organisation or charity. This is a great way to encourage compassion and care for others but do be aware this might be a stage, so allowing them to be locked into an automatic payment or something similar at a young age is not a good idea.
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