Giving children pocket money

If you can afford to, giving pocket money can be a great way to help your children learn about money.

Why it can be useful

  • It can help your child understand the value of money
  • It promotes good money habits
  • It starts the conversation around saving.

Things to think about

Just a small amount each week can get you off to a good start. Here are some things to think about.

When should I start giving pocket money?

The earlier you start talking about money, the better.

From an early age, children can understand swapping money for ‘things’. Your children will also understand saving, so putting away money in a piggy bank is a great idea. Ask them what they would like to save for and set a savings goal.

By giving pocket money in cash, children start learning the value of different coins and notes.

Start off by giving a small amount of money. As your child gets older, you could increase the amount and maybe think about setting up a regular payment into their bank account.

Why should I give my child pocket money?

Pocket money allows children to manage their own money and build money habits. Giving a regular amount at regular times will help them learn to budget.

Children tend to be more interested in looking at prices and searching for a good deal when they’re spending their own cash.

By encouraging children to save, they can learn about delayed gratification. It helps to show how small amounts of money add up over time. Celebrate with them when they reach their savings goal.

It’s also good to let your children make mistakes with their money when they’re young. If they make small mistakes with their pocket money, they’re more likely to remember these lessons when they’re older.

How much pocket money should I give?

The amount of pocket money can depend on your child’s age. Think about what you expect them to pay for and your own financial situation.

Statista state that the average pocket money in the UK is around £5.00 a week. Information correct as of April 2024.

Start small. Give young children a pound or two each week. They can buy their own sweets or treats. If you can afford to, build up to a bigger allowance for teenagers.

Good to know


A good way to help children make the link between working and earning is to let them earn some money doing some jobs around the house. You could suggest they only get pocket money if they help. You could also suggest different amounts for different jobs.

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