Pocket money for kids: how much UK money you should give your child in pounds for toys on average - age guide

• Learn how to balance pocket money to teach kids financial responsibility at every age
• Understand the evolving money lessons children need as they grow and develop
• Discover strategies for using pocket money as a tool for teaching budgeting and saving
• Explore how to tailor pocket money amounts to your child’s stage of life and growing independence
• Get tips on using pocket money to instil important financial habits they'll carry into adulthood

As children grow up, their understanding of money evolves, and one of the most important lessons a parent can impart is how to manage finances responsibly.

Pocket money plays a key role in this, but what is the right amount to give your child? It’s a delicate balance - too little, and they may feel restricted; too much, and they may not appreciate the value of money.

The right amount of pocket money varies depending on a child’s age and needs. From small amounts at an early age to larger allowances as they grow, it offers a valuable opportunity to teach kids the fundamentals of personal finance.

By using pocket money as a tool, you can help your child develop habits that will serve them well into adulthood, while also being as generous as your circumstances allow.

But what is the appropriate pocket money amounts for different age groups, and how best can you use pocket money as an educational tool? Here is everything you need to know.

Early years (ages 5-7): small but significant - £1 to £2 per week

At this stage, children are just beginning to understand the concept of money. They may not yet be able to comprehend abstract financial concepts, but they can grasp the idea of earning and spending.

Pocket money at this age should be minimal, as it’s more about teaching the basics. This small amount gives your child a chance to experience handling money, whether they’re saving it for a small toy, buying sweets, or giving it to charity.

The focus should be on teaching them about saving, spending, and even sharing with others. It’s important to use these early years to model good financial habits, such as using a piggy bank to save up for a particular item.

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Primary school (ages 8-11): learning to budget - £3 to £5 per week

As children grow, they become more capable of managing their pocket money. By ages 8 to 11, they can start to understand the relationship between earning, saving, and spending. This is the ideal time to start teaching them about budgeting.

At this stage, children may begin wanting to buy small items on their own, such as snacks or toys. Pocket money amounts should be enough to cover these expenses but not so large that they can purchase whatever they want without consideration.

In addition to helping them budget, you can introduce the concept of "saving for a goal," where they set aside money for something bigger.

This will reinforce the importance of patience and delayed gratification - skills they’ll need as they get older.

Secondary school (ages 12-14): gaining independence - £7 to £10 per week

By the time children reach their teenage years, they are becoming more independent and may be involved in extra-curricular activities where they have additional spending needs, such as paying for outings, school supplies, or small personal items.

It’s important to increase their pocket money to reflect these new financial responsibilities. With this amount, they should be able to manage small day-to-day expenses while still learning how to save for larger purchases.

During this stage, you can start discussing more advanced financial concepts, like managing money for both short-term and long-term goals.

For example, they could set aside money each week to save for a phone, a game, or clothes they want, teaching them the value of prioritising needs versus wants.

Older teens (ages 15-17): preparing for adulthood - £15 to £20 per week

As teenagers approach adulthood, their financial needs will naturally increase. They may start to take on part-time jobs or earn money through allowances for chores, which can further enhance their financial literacy.

You may also want to encourage them to take on more financial responsibility by giving them a larger allowance to manage.

At this stage, pocket money should reflect the increased responsibilities they have, such as paying for their own entertainment or contributing to household expenses. This is a good time to teach them about balancing a budget.

You might also introduce them to banking, such as setting up a savings account, or allow them to have a prepaid card for managing their spending. This stage is crucial in preparing them for financial independence when they eventually leave home.

Tips for teaching financial lessons

• Set expectations early: Ensure your child understands that pocket money is a way to teach them about managing money, not a reward for good behaviour. They should earn it consistently, and it shouldn’t be given in response to demands.
• Introduce chores: Tie pocket money to household chores to reinforce the idea that money is earned. It also teaches them the importance of working hard for what they want.
• Encourage saving: Encourage your child to save a percentage of their pocket money, such as 10%. By teaching them early how to save, you’re helping them develop an important financial habit.
• Discuss financial goals: Help your child set a savings goal, whether it’s for a big purchase, a rainy day, or something special they want. This teaches goal-setting and planning.

We’d love to hear your thoughts on how you handle pocket money for your children! Do you have any tips or experiences to share? Drop a comment below and let us know how you approach teaching financial responsibility at home.