How much pocket money should you give your kids?
Eloise Hill
Content writerAccording to latest research, UK kids are getting a pocket money 'payrise' this year. But how much should kids be getting ... and how much do YOURS get, if any?
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According to a new study, UK kids are getting an average of £7.58 per week pocket money in 2022. That's an increase from £6.97 in 2021, lucky them!
Barclays' pocket money survey asked 1,000 parents with children under 16 about their habits.
It found seven in 10 regularly give their children a small amount of pocket money, mostly weekly but 16% dish it out monthly instead.
Almost three quarters of kids need to do household chores to earn their money, however 54% of parents said they don't always stick to this rule.
The poll found the three chores that earned the most money were washing the car, baby-sitting siblings, and keeping the car clean.
It also revealed that six in 10 parents choose to give their kids pocket money cash-in-hand, whilst 22% opt for a bank transfer!
Giving your kids pocket money is a great way to teach them about the value of money and how to save their cash.
But, it's also a parenting minefield: from knowing how much to pay, to how often, and whether your kids should do chores to actually earn their cash.
According to financial expert, Jasmine Birtles, who runs money saving website MoneyMagpie.com, there are four key benefits of giving your children pocket money.
These are:
1. It teaches your children to save
Jasmine recommends opening a savings account for your kids.
And also finding out what they really want - so that together you can come up with a plan for how they can save up for it.
She says, ‘Discuss with your children what they want to save up for - a mobile phone for example.
‘Then search together for the best deal, and work out how they can save up for it. For example, you could say if they saved up half, you’ll match the rest.
‘As a rule of thumb, 10% of their pocket money is a good amount for your kids to save … but 20% is better!’
2. Your kids will learn the value of money
When children are given the independence to buy things themselves, they become more aware of how much things cost.
And this not only means they begin to see the value in the things they already have, they’ll also be more aware of shopping around for good deals.
Jasmine says, ‘When your children are slightly older, you could give them the amount you know it costs for an average monthly phone bill and then challenge them to find a cheaper deal.
‘That way the money they have left over by switching to a better deal they can spend on nice things.’
3. It teaches your kids to budget
Another advantage of giving pocket money is that gives children valuable experience in managing their financial affairs.
It's easy to assume that all kids will just fritter their money away but you may be surprised to find your child is quite astute and quickly realises the power of saving.
Jasmine says, ‘As your children get older they could start to be given control over things that matter to them. So you could say you’ll give them a set amount and for that they have to buy their own clothes for example.
‘If they blow their pocket money then they’ll learn they have to wait until the following week or month when they get their next allowance.
‘That’s quite hard but it quite quickly teaches them what they are going to need and not to blow their money all in one go.’
4. It could work out cheaper for you
If you sit down and actually add up how much you hand out to your child each week for things like comics, sweets, toys, entertainment, you'd probably be surprised at what it all amounts to.
So giving your child a set amount each week can work out cheaper ... as long as you abide by the 'once it's gone, it's gone' mantra.
But how much to give, and how often:
So how much pocket money should you give?
If your kids are reading this, chances are this is the ONLY bit they are interested in …
So how do you decide how much pocket money to give?
Latest research from Barclays (mentioned above) says this year, kids are set to receive an average of £7.58 per week.
According to research charity Childwise though, the 2020 average weekly amount of pocket money given to children is as high as '£11.70, which can be made up through an allowance or earned through doing household chores.'
However, panic not as this amount was an average of different age groups with 5-to-10-year-olds receiving £6.40 per week on average and 11 to 16-year-olds getting around £16.30 per week.
In our forum, many mums say they give their children £5 a week, with some paying their child’s mobile phone bill on top of that if they are older.
Jasmine says, ‘It’s a tricky area - there is no one size fits all and it also depends on the age of the children.’
She recommends considering the following points:
- How old your child is
- What you are expecting them to do with the money. For example, are you expecting them to use it to buy their own toys or games?
- Your own weekly budget: don’t feel pressured into giving your kids too much if it’s simply not affordable.
Should you give your kids pocket money in return for them doing chores?
Teaching your kids to understand the value of money is a vital life lesson. Which is why giving them chores to do in order to ‘earn’ their pocket money can be a good tactic.
Jasmine says, 'I’d say there are certain things children should do as a matter of course, being part of the family - they should lay the table, they should learn to do the washing up.
‘However things like washing the car is something you could pay them to do. In other words, bigger tasks that aren’t part of the normal run of being in a family.
‘It’s a balance because on the one hand children need to understand they should do chores - they are part of the family and the house and everyone should do something.
‘At the same time it’s also useful for them to learn to earn money and connect money with working.’
How to make pocket money work for your kids … and you
Be open about your own finances
There can be pressure from your kids to give them as much pocket money as their friends.
Jasmine says, ‘Don’t feel you have to keep up with your children’s friends and how much pocket money they are getting.
‘I think it’s important parents and families are open with each other about their money situation.
‘You don’t want to worry children, but when they are aged eight and onwards I think it’s useful for them to understand there is a certain amount of money you’ve got .
‘And that you’d love to give them more but you just don’t have it.’
Encourage your kids to think of ways THEY can make more money
If you are really struggling to give your kids pocket money, then sit down together and work out how to make money together.
Jasmin says, ‘You could do a car boot sale together or you could help them sell their old toys and clothes on eBay.
‘And tell them that any money they make from their things that they sell, they can keep.’
How much pocket money do you give your kids? Why not share your own pocket money tips in our forum, below.
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