When to start giving pocket money and how much

The first pocket money usually appears when a child starts asking you to buy them something in every shop. This is a good moment. Money that a child manages themselves teaches them more about prices than any explanation ever could.

The one-sentence answer

At what age

In 2013, Cambridge University researchers David Whitebread and Sue Bingham reviewed how children learn for the UK’s Money Advice Service. Their conclusion was clear: the habits that shape how we manage money are formed very early. These involve the ability to plan ahead and wait for what you want.

By the age of seven, most children in these studies could already recognise the value of money and count it. They understood that money is exchanged for goods and that it has to be earned. However, children under eight couldn’t yet grasp the difference between “want” and “need.”

In the UK, three-quarters of parents start giving pocket money when their child is between five and seven years old. The main sign of readiness isn’t age, but whether the child can count and understands what money is for. Once they do, you can start with a very small amount.

How much to give

There is no single correct amount. Three questions will help you decide: How old is the child? What exactly are they supposed to buy with this money? And what can your family afford?

If the pocket money is just for small treats, the amount can be tiny. If the child is supposed to buy their school snacks with it, the amount needs to be larger. Don’t base it on what their classmates get. No matter how much you give, your child will always want more, and that is completely normal.

How to make it work

1. Give the money on the same day every week. Consistency is key because it teaches the child to stretch the amount over the whole week.
2. Agree in advance on what this money is for and what you will continue to pay for.
3. Don’t top them up if they run out early. Just gently remind them when the next “payday” is.
4. Set up two jars: one for spending now, and one for a bigger goal that requires a few weeks of saving.
5. Talk about your financial decisions out loud. Children watch how adults handle money and copy them.

What about paying for chores?

This is a separate, big debate. A common approach is this: everyday chores, like tidying their own room, are done without payment because the child is part of the family. But for going above and beyond, like helping to wash the car, you can pay extra. The most important thing is that the rules are clear and stay the same every week.