Pocket money is one of the few areas where the financial lesson comes naturally if set up well.
A small fixed weekly amount, given on the same day each week, teaches the concept of regular income. Keep it simple at first — no complicated systems for young children.
If a child blows all their pocket money on sweets and then has nothing left, let them experience having nothing left. The short-term discomfort teaches delayed gratification more effectively than any explanation.
For bigger goals, offer to match what they save pound for pound up to a certain amount. This teaches the concept of matching contributions (relevant to pensions later in life) and makes saving feel more rewarding.
Track pocket money with our free pocket money chart.