When it comes to personal finance, many Brits believe in starting young. Research from 2014 showed that nearly a quarter of parents give their three-year-olds pocket money – and nearly half of these lucky tots get up to £1 a week. By the time their kids reach 15, more than 90 per cent of parents provide an allowance, giving an average of £7 to £8 a week.
Well, that’s if they remember – nearly a third of parents said they sometimes forgot to dish out the pocket money and almost one in five confessed to rarely handing it over.
Getting their own spending money is a great way to start teaching children about money management, no matter how young they are, and can also give them some useful lessons for life.
To give or not to give
There’s no ideal time to start giving pocket money. But it could make your children feel more grown up, and you may even save money from constant random requests for cash!
Decide how much you want to give them beforehand and stick to it. You also need to be clear from the start what the money is for and what it’s not for, especially with younger children. Will they get extra for holiday spending, for example, and what about days out?
It can also help your child to learn about budgeting. Talking of budgeting, half of parents admit to raiding their kids’ piggy banks occasionally. If you’re one of them, perhaps it’s time to set a better example!
Learn more about financial management
Developed and launched by Experian in 2012, Values, Money and Me aims to give young children get a head start in life by helping develop their financial knowledge and abilities, as well as their attitudes and values towards money.
Available to all UK primary schools, the web resource – based on the financial dilemmas of the residents of Pride Place – has been designed to resemble a children’s storybook. Simple to use, it explores key issues such as earning money, budgeting and saving, through a range of engaging activities, based on a series of interactive stories. Values, Money and Me is currently being used by a number of primary schools to deliver money lessons. It can be found on Facebook too.