Learning about money is an important part of growing up. Start your little one out with pocket money so they can begin to learn the basics!
The original pocket money meaning may have once referred to a small money bag that was carried on the belt. That definition has since evolved to mean the extra change that doesn’t have to be earned! Today, pocket money might even be a digital transfer via a credit or debit card. Whether you call it fun money or make it an allowance, teaching your kids about their finances is important. Few things in life are free so let our pocket money guide help you get started! Be sure to share your ideas for teaching kids about money on your favorite family app.
Why Give Pocket Money?
For a lot of kids, having money or buying something is simply a matter of asking their parents. But giving your child their own money is a meaningful way for them to develop financial know-how. By being responsible for their own purse strings, they will more readily learn the value of a dollar. It will also help them to determine what’s valuable enough for them to spend their money on. While you may want to give out a weekly allowance without conditions, you can make it dependent upon chore completion. A little pocket money for kids can make for an important life lesson, whatever way you decide to do it!
When Should You Start Giving Pocket Money?
There are no rules when it comes to the right pocket money age! It’s important though to take note of your child’s development as this will tell you when they’re ready. Between the ages of four and seven, kids will begin to understand what money can buy.
By providing pocket money, your kids may be able to pay for the bus or buy their own lunch. This will start to instill in them an awareness of what money is. Between the ages of eight and thirteen, they will start to learn more about the price of things. It can also be a good time for them to learn about short- and long-term savings goals. Share your important money tips on FamilyApp with other parents!
How Much Pocket Money for a Teenager?
Kids between the ages of fourteen and eighteen are at the age where money will soon be very important. Whether they’re going to college in a year or planning to work or travel, they’re going to need to manage their funds! Instead of thinking of it as pocket money, you may want to think of it as an allowance. Whether you pay them monthly or weekly, this can make them more responsible and provide them with greater independence.
It’s important as teenagers learn about money that they start understanding how to plan their monthly spending so they can make it last. For the sake of consistency, give them money on the same day of the week or month, and don’t give advances. Of course, you can always give them extra money as a reward for good behavior and hard work! Be sure to share your own ideas for making teenagers fiscally responsible on your favorite family app.
Pocket money might be a fun extra for kids, but it’s more than that. It’s a helpful way to teach them about finances for the future. Whether they’re going to school or buying a house, knowing how to manage money is key to making them financially savvy. Do you have any tips for giving pocket money by age? Share them with other parents in our comments! By learning the value of a dollar, your children will be on their way to greater financial freedom.
For more family finance tips and advice, check out the Finance Category on FamilyApp.