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How to Give Pocket Money Without Spoiling Kids

Practical Ways to Deal With Children's Finances

Nov 15, 2008 Asa Ghaffar

There is a fine line between giving a child next to nothing and too much money. Identify ways of establishing how to use pocket money to motivate a child to do better.

According to the "2008 Halifax Pocket Money Survey", the average amount of pocket money given is currently £6.13. This figure varies considerably between different children. What is required of each teenager to earn their money can also vary considerably.

There is a line of thinking that simply giving children money doesn't send them the right message. It makes the attainment of cash seem simple, which creates debt problems in adult life. It also sends a message that money should be given out rather than worked for which is also wrong.

Deciding How Much pocket Money?

Ask other parents how much pocket money they give their children and base decisions on the child's age. There is no point in asking the parent of a 14 year-old how much pocket money they give their son as it is unlikely to be suitable for a 5 year-old.

Bad Behaviour - No Pocket Money This Week

If a child isn't well behaved, docking pocket money can be used as a tool to discipline a child and make him realise that it won't be tolerated. It will teach him a lesson that will benefit him in adult life.

Make Children Save Pocket Money in the Bank

Making a children save 10% of their pocket money at an early age will help them later on in life. It not only gives them discipline but also allows them to save for something useful or just for the future. The rate of interest is also vastly more favourable as children's savings are free from taxation.

Household Chores to Earn Pocket Money

Assigning household chores, such as doing the hoovering or washing up, in return for their pocket money is an excellent idea. It makes them realise that money doesn't grow on trees and has the added benefit of slightly reducing the parents workload.

Earn Extra By Getting a Paper Round

No matter how much is given to a child, he will ask for more pocket money. This marks the point where he can be welcomed to the exciting world of work. The classic job for a teenager is a paper round as it fits around schooling. According to a "BBC Paper Round Survey", this typically raises between £5 and £15 per week.

Pocket money is a useful tool to help children to learn new things and to teach them to avoid debt problems. Never forget that what is learned in childhood generally stays with a person for the remainder of his life. Getting things correct at this stage helps to prevent a number of problems from cropping up in the future.

The copyright of the article How to Give Pocket Money Without Spoiling Kids in Family Finances is owned by Asa Ghaffar. Permission to republish How to Give Pocket Money Without Spoiling Kids in print or online must be granted by the author in writing.

Deciding On Pocket Money