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Pocket money: how much to give, what to expect and how to make it educational

Pocket money is one of the most effective tools for teaching children about money — but how much to give and how to structure it matters.

How much?

A rough guide: £1–2/week for ages 5–7, £3–5/week for ages 8–11, £5–10/week for ages 12–15. These are starting points — the most important thing is consistency and the child understanding what the pocket money is for (treats only, or everything including their social activities?). The Halifax Pocket Money Survey provides UK annual averages.

Should it be linked to chores?

Two schools of thought. Unconditional pocket money teaches that everyone in the household contributes to chores — it is not optional or paid. Linked pocket money teaches that work leads to income, which is a valuable life lesson. Many families use a hybrid: basic chores are expected, but extra chores earn extra money. Use our free pocket money chart to track both approaches.

Teaching saving alongside spending

Introduce the three-pot approach: spend, save, give. The moment children have their own money, they can begin making financial decisions. Even saving £1 per week towards a goal teaches delayed gratification — one of the most predictive life skills.

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Frequently asked questions

What age should you start giving pocket money?
Most parents start at 5–6, when children understand the concept of exchange. Starting too early (before 5) is usually lost on them; waiting until secondary school means missing the years when financial habits form most readily.
What happens if they spend it all immediately?
Let them. The consequence (nothing left for the rest of the week) is the lesson. Resist the urge to bail them out for the first two or three weeks. The experience of running out teaches more than any lecture about saving.