Should you give your children pocket money?

There’s no right or wrong answer to whether you should give your children pocket money – it depends on what suits your family.

The experts say it can be useful for helping children learn about money management from an early age, but it’s not necessarily right for every child or family.

“Pocket money can be a brilliant tool for teaching children the value of money, but there’s no one-size-fits-all approach,” says Vix Leyton, a consumer finance expert at thinkmoney.

“Some parents give it, some don’t, some make it task-driven and use it to motivate to complete chores, and the amount can vary hugely depending on income, values and what that money is expected to cover.”

Matt Buttery, CEO of the Triple P UK and Ireland parenting programme, adds: “Pocket money can be a tricky area for any parent. How much to give, at what age to start, or even whether to give children pocket money at all, are all common questions many parents have to deal with.

“Every family is different, and pocket money may not be the right choice for everyone.”

What age should you give pocket money?Clearly, it’s up to parents whether they give their kids a regular allowance, and at what age – some think it’s useful to start dishing out pocket money from as young as four or five, as it can be a way to help children learn about money.

Mumsnet  users, for example, seem to start giving pocket money around the age of five, and when children start school at around that age, they’ll begin to learn basic maths, so having their own money to handle could help with learning to add and subtract.

Leyton says: “A lot of parents might worry about when the ‘right’ time is to start giving pocket money, because it feels a little too grown-up and formal. But really, as soon as children can grasp the idea that if you spend money, it’s gone, pocket money can be useful.

“For younger children, that might mean very small amounts, purely to learn that spending today means waiting until next time for the next thing you want – you don’t need to raise a mini-Martin Lewis, just start the process.”

How much should you give?

Once you’ve decided you’re going to give your child pocket money, and at what age, the next question is how much?

Obviously, it depends on their age, but the NatWest Rooster Money Pocket Money Index 2025 found that throughout the year, kids received an average annual income of £474.76 (£9.13 per week) from a combination of regular pocket money, money for chores and rewards, down 1% from the previous year.

The research found that while 17-year-olds are given an average £8.31 pocket money a week, six-year-olds’ average pocket money comes in at £2.81 a week.

“What matters far more than the figure itself is how it’s used as part of wider conversations about money,” stresses Leyton.

“At its best, pocket money is a practical way to teach children that money isn’t endless and that choices have consequences. It turns money from something slightly mysterious into something tangible.”

Consistency is keyLeyton points out that for pocket money to work, it needs to be consistent.

“If children don’t know when it’s coming or what it’s meant to cover, parents quickly become an on-demand cash machine that gets shaken whenever inspiration strikes – not a good a precedent to set before they go into more expensive eras of adult life.”

Should you link pocket money to chores?Many parents reward their children with pocket money for doing household chores, and Buttery says the benefit of linking the two is that it strengthens the connections between effort and reward.

But he stresses: “It’s also important that children learn their efforts do far more than just earn them some money – they also benefit the wider family and themselves.

“Learning that some actions bring external rewards, like pocket money, while others bring internal rewards, like satisfaction or empathy, is a really useful life lesson. Even when there’s no material reward, contributing is always worthwhile.”

And Leyton says that while linking pocket money to chores can work,  expectations should be clear.

“If pocket money is tied to chores, it becomes a lesson about earning and responsibility rather than pure money management,” she explains. “That’s not a bad thing, but it’s different. What matters still is consistency and not moving the goalposts – otherwise, children quickly learn that negotiation is more powerful than effort.”

Pocket money can help kids learn to save

If children are given pocket money, it can be a gentle way to introduce them to saving, Leyton says.

“Helping children put a little aside for something they want builds confidence and a sense of control,” she explains. “It shows them money isn’t just about restriction, it’s about choices, and introducing that mindset early is a great way to set them on the right path for things they can take over at 18.”

She says that as children get older, pocket money can start to mirror real life more closely, with kids learning to budget for things such as phone credit or social activities. “It gives them a safe space to practise managing money before the stakes are higher,” she says.

Pocket money can help teach patienceOne of the biggest lessons pocket money teaches is patience, says Leyton, who points out that the experience of spending everything immediately and then having to wait is often far more effective than any well-meaning lecture.

“It’s tempting to hover and micromanage what children spend their money on, but sometimes letting them blow it all on something mildly ridiculous and feel the regret is the lesson – a questionable decision with a fiver is a lot cheaper than one with a credit card later in life.”

Talk to them about moneyLeyton says that, ultimately, pocket money isn’t about creating perfect savers or ultra-disciplined budgeters, it’s about raising children who aren’t scared of money, and who understand it’s something to be managed, talked about and learned from.

“The earlier we normalise that, the better,” she says. “The Government has promised money management in schools, but it’s best if it starts at home, with open and honest conversations and a place of safety to learn.”

And Buttery adds: “Above all, it’s helpful to remember that discussing money in an age-appropriate way, along with tools like pocket money, provide valuable opportunities for children to learn skills that can last a lifetime.”