Teaching Children About Money: How to Give Them a Pocket Money that Matters

When it comes to teaching children about money, giving them pocket money can be an effective way to do so. However, with the rise of digital payments, cashless transactions, and card-based purchases, many parents find themselves struggling to come up with the exact amount of change their kids need.

For instance, if you're like me, you may not always carry cash, making it difficult to give your children the exact amount they need. This is where a child-friendly debit card can be a great solution. The Kite card and app from Starling Bank, for example, links directly to your current account and is available for children aged six to 16.

When deciding how much pocket money to give your child, it's essential to consider their age and the expectations you have for them to pay for certain things out of their own pocket. According to MoneyHelper, the average weekly amount of pocket money given to children is £11.70, although this can vary significantly depending on these factors.

Rather than giving your child too much pocket money, it's better to give an amount that's affordable for you and will still teach them the value of saving up for things they want. This will help them learn how to budget and understand the importance of money management.

As MoneyHelper advises, 'Once they understand what 'money' is, and have seen how you use it, pocket money is a great way to get them to understand what 'money' is used for – whatever their age.' The sooner children are familiar with coins and notes, the quicker they begin to appreciate the value of money.

The government's MoneyHelper service recommends starting your child's financial education at the age of three or four. If you're unsure where to start, here are some dos and don'ts to keep in mind:

By following these guidelines, you can help your child develop a healthy understanding of money management and set them up for financial success in the long run.

Money in pocket