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 recent research by the Money Advice Service (MAS)* found that while 90% of children interviewed said they would go to their parents for advice about money, only 60% of the parents felt confident talking to their children on the subject. 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.