36 important lessons for children’s pocket money

 

How do you handle the tricky issue of pocket money and teach your children about money at your home? At our recent Twitter party, we asked your experiences: How much do you give? What age do you start? Do they have to do chores to earn it?

The party was sponsored by PKTMNY, a new website that was created to help parents control their children’s pocket money, set goals for earning and electronically transfer allowance or earned rewards onto a special card that kids can use at the shops.

Here, your thoughts on what’s important with pocket money:

They should learn from parents’ mistakes
1. I really encourage saving as I was never taught to manage my money and struggled and got into debt. @In_theRain

2. Yes I am determined more than ever to sort finances so that kids learn from our mistakes. @MummyVsWork

Get them started early
3. [We] Spend time playing shop with my boys to understand money. @mumslittlepeeps

4. The 2- and 3-year-old get pennies for pocket money. They love counting, putting in the piggybank and choosing a treat to buy. @sonnyandluca

How much should you pay?
5. Don’t worry about what other people are giving their children! Set an amount that’s good for you! @gemmagwynne

6. Pops (or Grandpa) gives them £2 every time he sees them, about twice per month. We don’t give any. @mummyratesit

7. There is a sliding scale in our house depending on age. @Hex-Mum

8. Rewards such as star charts for young kids are a good idea – if you get 10 stars, you get a £1. @melandjake99

When do you give pocket money?
9. I pay pocket money when I get paid, introduces the idea of budgeting for a month and reminds them that I am not a bottomless pit. @hollyseddon

10. I hand pocket money over on a Monday morning because then there is more chance it goes into the piggy bank than spent on rubbish. @Ellen27

11. I must admit I struggle with being consistent. Some weeks I’m really mean and don’t want to give them any. @mummyblogger

12. Have to admit we’ve been stop/start to remember to give our boys pocket money. Though they’ve forgot to ask too. @thepottydiaries

Should pocket money be linked to chores or school work?

13. Pocket money has always been a privilege not a right in my house. It’s to reward good behaviour and achievements. @Mummafelice

14. We don’t pay for regular chores like loading the dishwasher but onerous or unusual ones such as clearing out the cellar we do. @jhowze

15. It works with my son – better grades more money, definitely an incentive. @melandjake99

16. We don’t reward grade but we do reward effort. Not your fault if you work hard but don’t do well. @tattooed-mummy

17. I have always been against it but in a work environment that is how you are rewarded so maybe a good idea. @astrongcoffee1

How do your children spend it?

18. My middle one likes magazines and games apps and he saves for bigger items. @SonyaCisco

19. So far a DS, 2 phones (one a smartphone) and a robot dinosaur. She saves for about a year and then spends. @tattooed_mummy

20. My son bought a carry case for his handheld console from the PKTMNY shop. @_glitzygleam

21. He loves those toys because he worked and saved weeks to buy them. @NiceHandwriting

22. Mine bought fabric from the charity shop for £2 with pocket money then made 4 totes and sold at £5 each. @utterlyscrummy

23. My 5 year old is buying her little sister a Xmas pressie from her own money. Saved 4 weeks so far so £4. @Rachel_S

24. My gift from him was bought from a bric-a-brac stall, doesn’t matter what it is though. He has saved and chosen it!! @weheartcards

Do you let them make bad decisions with their money?

25. Best some mistakes are made by them now whilst amounts are small. Live and learn. @lespommes

26. I think it’s quite important to let kids squander pocket money it they want – that way, they’ll learn. @Ellen27

What do you teach about saving and spending?

27. We stipulate that at least 10% should be saved. Told them to think of it as tax LOL. @utterlyscrummy

28. I get them to save pennies they find so they learn it all adds up. 100 pennies = £1. £1 = power to buy sweets. @TheBeezleyBuzz

29. It surprised me that when DD saw it totting up, she didn’t want to spend. She’s a regular Scrooge now. @tattooed_mummy

30. Take pocket money as a chance to talk about finances e.g. cost of food, rent etc. Show your children the big picture. @caro_mad

31. Best way to teach kids money management is to give them the same amount each week and tell them to manage! @peterpannursery

32. We always tell little man that everything has a price and we need to work for our money, need to earn it. @LilinhaAngel

What do you think of the PKTMNY site?

33. Site looks good, keeps everything in one place rather than my scribbled notes of who has earned what! @theBeezlyBuzz

34. My son loves that he can log into his account and see his savings. I love that I can him limits to his spending. @glitzy_gleam

35. I think this is one of the best reasons for having a pre-paid card – demonstrates reality. @familyfourfun

36. I like the PKTMNY site. It’s very colourful and child-friendly. @melandjake99

Check out PKTMNY, a new website that can help you manage your children’s pocket money.