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Pocket money and chores: teaching kids about money

Pocket money is one of the best tools for teaching children about money — if you use it thoughtfully. This guide covers the common questions: how much, whether to link it to chores, and how to build money habits that last. There's no single right way; pick what fits your family.

How much, and when to start

There's no universal 'right' amount of pocket money — it depends on your family's circumstances, your child's age, and what you expect them to pay for out of it. Many families start small pocket money around primary school age, when children begin to understand money and counting, and increase it as they get older and their needs grow. A useful approach is to be clear about what the money is for: a small amount for a young child to spend on treats is different from a larger, more 'grown-up' amount for an older child or teen who's expected to budget for some of their own things (snacks, outings, gifts for friends). Whatever you choose, consistency matters more than the amount — giving it regularly and reliably is what lets children learn to plan and save. Don't feel pressured by what other families do; set an amount that's comfortable for you and appropriate for your child. Our free pocket money tracker helps children keep tabs on what they have.

Linking money to chores (or not)

Whether to tie pocket money to chores is a genuine parenting debate with good arguments on both sides. Linking them teaches the real-world lesson that money is earned through work and gives a sense of contribution and achievement — our free chore & money chart supports this. The counter-view is that some chores should simply be expected as part of being in a family, not paid, so children learn to contribute for free as well. A popular middle path captures both: certain everyday jobs are just expected (unpaid), while a list of extra, bigger jobs lets children earn additional money — teaching both family responsibility and the work-reward link. Whichever you choose, a chore chart makes expectations clear, reduces nagging, and (if paid) shows children the connection between effort and earnings. The key is being clear and consistent about which jobs are which, so everyone knows where they stand. Our free chore chart and jobs list help you set it up.

Building money habits that last

Pocket money's real value is as a hands-on classroom for lifelong money skills. The single most powerful concept to teach is dividing money into save, spend and (if you like) share — encouraging children to put some aside for a bigger goal rather than spending it all immediately teaches saving, patience and the rewards of waiting, which are hugely valuable habits. Help them set a savings goal for something they want and watch it grow — our free kids' savings goal tracker makes this visual and motivating. Let them make their own spending choices (within reason) and even their own mistakes — buying something rubbish and regretting it is a cheap, powerful lesson at this age. Talk openly about money in age-appropriate ways, involve them in small real decisions, and model good habits yourself, since children learn most from what they see. As they get older, gradually hand over more responsibility — a clothing or activities budget for a teen, perhaps a bank account — to build real-world money management before they leave home. Done well, pocket money raises children who understand that money is earned, finite, and worth managing thoughtfully. This is general guidance, not financial advice.

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Frequently asked questions

How much pocket money should I give my child?
There's no single correct amount — it depends on your family's finances, your child's age, and crucially what you expect the money to cover. Younger primary-age children might get a small amount purely for treats and to start learning about money and saving, while older children and teenagers often get more, especially if they're expected to budget for some of their own spending like snacks, outings, or gifts for friends. The amount tends to increase with age as both their understanding and their needs grow. Rather than fixating on a specific figure, it's more useful to decide what the money is for and set the amount accordingly, and to be clear with your child about what they're expected to pay for themselves. Consistency — giving it regularly and reliably — matters more than the exact amount, because that's what lets children plan, save and learn to manage money over time. Don't feel pressured to match what other families give; choose what's comfortable for your budget and appropriate for your child and your goals. Many parents also increase pocket money as part of giving older children more financial responsibility, which is great preparation for adulthood. This is general guidance, not financial advice — do what works for your family.
How do I teach my child to save money?
Teaching children to save is one of the most valuable money lessons, and pocket money is the perfect practical tool for it. The most effective concept is to encourage children to divide their money into 'save', 'spend' and perhaps 'share' — so rather than spending everything immediately, they regularly put some aside. Making saving visual and goal-focused powers it: help your child pick something they really want that costs more than one week's money, then track their savings growing toward it (a savings goal chart or a clear jar where they can literally see the money build up works brilliantly for younger children). Reaching the goal and buying the thing themselves teaches the rewarding lesson that patience and saving pay off. Other tips: praise saving and resist the urge to just top up their money when they fall short of a goal (the waiting is the lesson); let them make their own spending choices and mistakes, which teach more than lectures; talk about your own saving in age-appropriate ways; and as they get older, consider a children's savings account to introduce the idea of banking and even interest. Above all, keep it positive and hands-on rather than preachy — children learn money habits by doing, and by watching the adults around them. Start small and young, and you build saving into a natural lifelong habit. This is general guidance, not financial advice.