Most of us remember the excitement of receiving pocket money as a child – the sound it made as it dropped through the slot into your moneybox, and then the thrill of deciding how to spend it. As a parent, however, the idea of giving your own child pocket money can bring a new set of dilemmas and worries. Is there a right age for them to start getting pocket money? Is there a right amount? Will they spend or save it wisely?
There is growing recognition that the earlier our children start to learn good money habits, the more financially capable they will become as adults. Yet research by the Money and Pensions Service (MaPS) found that less than half (46%) of parents talk openly with their children about money. The more confident that parents are about managing their money, the more likely they are to talk to their children than those who are not confident with money (58% vs 33%). Giving your child pocket money provides the perfect opportunity to discuss money and teach your child good financial habits within the home, so here’s some practical advice and useful tips on this often-contentious subject.