Do you consider giving your kids pocket money essential? Is it bribery to complete basic chores, or does it teach them budgeting, saving and basic money management skills? Well in truth it’s probably a bit of both, and I don’t think either is a bad thing! In talking to mum-friends, however, I have discovered a wide variation on the whole pocket money theme from amounts, how it is earned and what it is spent on.
How Much?
This is almost certainly the first hurdle. According to recent polls, in the UK the weekly average for 7-12 years olds is £6.90 (around $13.40) and for 12-16 year olds it is approx £9.76 ($18.99). As the mother of a 5 and 7 year old living in Spain, who dishes out only the occasional “euro” for exceptional behaviour, and nothing on a regular basis, this seems an inordinate amount. So it leads to the next questions….what are they doing for this sum and what on earth do they spending it on??
What Do Kids Have to Do to Earn it?
Most parents are in desperate need of help about the house. And this is where the basic life skills come in. Pocket money can be a vital tool in teaching kids not only the value of money, but also about responsibility, consequences and encouraging them to take an active part in family life.
All children will understand the concept of earning money for chores. You can help simplifying things by having a chart with a list of chores, like making the beds, getting dressed, emptying the dishwasher. Add on some more difficult optional tasks like cleaning the car, vacuuming and dusting. Put a price next to these activities and make it clear which are optional and which aren’t. The kids can then earn extra pocket money with the non-essential chores.
Sometimes it can be easier to replace with marbles, tokens or stars, so that in the case of bad behaviour or a chore not being completed, a token can be removed. This is an easy visual tool for smaller children and more forgetful parents…you don’t have to keep a running total of cash in your head all day!
Where Does It All Go?
How much you give your child depends on what they are expected to buy for them selves. Set out guidelines initially so that they are clear. After all you don´t want their whole allowance spent on candy. For example, are they expected (as teenagers may be) to buy non-essential clothes from their cash? What about mobile phone top-ups? Presents for Christmas and birthdays? Establish ground rules so they know what they have to budget for.
Try to encourage a system of saving, which for smaller children can be hard. Give them small targets they can reach within a few weeks so they can see the benefits of not spending the lot in one week.
Pocket money can be a great life tool if managed properly and with a firm hand. It can give your children a great sense of achievement and empowerment. Just remember to set the rules and stick to them, it’s what your boss does when you get paid after all!
Mom Topics 
