Pocket money
Should pocket money be earned? | How much pocket money? | What should pocket money cover? | Pocket money and punishment | Pocket money and teenagers
When and whether to give pocket money
- The age at which you start giving pocket money depends on your child and you. However, check what their friends' parents are doing so your children don't feel too different from their friends.
- The main reason for giving children pocket money is to help them learn to be able to manage money while they are still young and you can guide them.
- It also may help children to feel that they are important members of the family because they are given part of the family's spending money.
- It helps children to make choices and to see that sometimes people have to wait to get what they really want.
- It can be a problem if there is not much money to spare in the family, but even a small amount can give a child the feeling of independence.
- In some families children are just given what they ask for and pocket money is not considered.
Should pocket money be earned?
- Many parents believe that if they decide to give pocket money, a certain basic amount should be given to the child just because he is a member of the family and not as payment for jobs. At the same time some children are expected to do some chores as part of their contribution to the family. These two things are both important but are separate parts of belonging to the family.
- You may decide to give a certain basic amount of pocket money and let your child earn a little more for some special chores, such as washing the car.
How much pocket money?
This will depend on a number of things:
- what you can afford
- what the pocket money is expected to cover
- the 'going rate' among other families in similar circumstances to yours.
If your child has a lot less than the going rate, she may feel hard done by and lack confidence with her peer group. If she has a lot more pocket money, it can cause resentment amongst friends.
Pocket money amounts usually increase as the child gets older and takes more personal responsibility.
What should pocket money cover?
Again this will depend on what you work out with your child. In the primary school years you might decide for example, that it should cover some saving, some for school lunches and some for the child to decide just what they want to use it for.
Giving pocket money and then telling the child exactly what they must use it for does not develop a sense of responsibility in the child. You might then have to be careful not to criticise their choices if you are not happy with them.
Some parents might decide that if the child is doing well with saving for something special that they will give a hand.
For example, they might put in a certain amount for every $5.00 the child saves. This can be an added reason for your child to save.
Pocket money and punishment
Stopping pocket money often seems an easy answer if your child has done something wrong. Sometimes this is OK. For example, if they have carelessly broken something it may be important for a weekly contribution from the pocket money to help pay for the replacement.
Taking away all of a child's pocket money, especially over a period of time, can cause a lot of resentment towards you. Sometimes it could lead to children in this situation stealing from their parents or friends.
Pocket money and teenagers
Teenagers are moving towards independence and it will help them if they have some practice in managing money while they still have your guidance.
Depending on your teenager's maturity you might decide to give a spending allowance to cover entertainment costs and perhaps to buy clothes.
If a rash decision is made about unsuitable clothing, it is a very good way for them to learn about wise spending. It may be that the first time a difficult situation arises, you come to an agreement about helping out. Make it clear that next time they must take the consequences.
Older teenagers often have opportunities to earn some pocket money from part-time work outside the home. How they use this money varies from family to family. In some families there may be a need for teenagers to contribute something toward the family or their own expenses.
Generally, this money belongs to the teenager. When young people begin to work full-time many families would expect a contribution towards board. You may want to say that the family money is not to be spent on certain things such as cigarettes, but adolescents need to have some control of their money in order to learn to manage it. Remember, pocket money is every family's individual decision about what works for their family.
Last updated: 20 June 2008.