The 2026 Guide to Pocket Money: How Much and How Often?

May 2nd, 2026 Posted in kids and money, learning about money
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One of the most common questions I hear from parents is, “How much pocket money should I be giving my child?” It’s a simple question with a complex answer, especially in 2026, where the cost of living and the shift to digital money have changed the landscape.

Pocket money isn’t just a weekly handout; it’s a child’s first “salary.” It’s the training ground where they learn the difference between a fleeting whim and a long-term goal. At The Financial Fairy Tales, we believe that the amount of pocket money is less important than the lessons it teaches.

The 2026 “Going Rate”

While every family’s budget is different, recent data suggests the average weekly pocket money in the UK varies significantly by age. Here is a general guide to help you benchmark:

•Ages 5-7: £2 – £4 per week. At this age, the focus is on the physical act of saving. The “Three Jars” method (Spend, Save, Give) is highly effective here.

•Ages 8-11: £5 – £8 per week. Children in this bracket are starting to understand the value of money and can save for larger items, like a new toy or game.

•Ages 12-15: £10 – £15 per week. This is often when digital pocket money apps become useful, teaching them to manage a balance and track spending.

How Often Should You Give It?

Consistency is key. Whether you choose weekly or monthly, stick to the schedule. Weekly is generally better for younger children, as a month is a very long time in the mind of a seven-year-old. For teenagers, a monthly allowance can teach them how to budget over a longer period, mimicking a real-world salary.

The “Earned” vs. “Given” Debate

Should pocket money be tied to chores? This is a personal choice, but a hybrid approach often works best. Provide a small, unconditional base amount to teach basic money management, and offer opportunities to “earn” extra through specific tasks. This introduces the concept of enterprise and hard work, a core theme in our story, The Magic Magpie.

The Real Value of Pocket Money

The true value of pocket money lies in the mistakes children make with it. If they spend all their money on sweets on Monday and have nothing left for the cinema on Saturday, they learn a powerful lesson in budgeting. It’s much better they make a £5 mistake at age eight than a £5,000 mistake at age twenty-eight.

By using pocket money as a teaching tool, you are moving them from a “consumer mindset” to a “wealth-creator mindset,” ensuring they learn before they earn.

Want more tools to build healthy habits? Our Financial Fairy Tales: Activity Book is filled with games and charts designed to make saving a fun and rewarding part of every child’s life.

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5 Simple Pocket Money Games That Teach Financial Responsibility

March 31st, 2026 Posted in goal setting for kids, kids and money
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Pocket money is often a child’s first “salary.” It is the training ground where they learn the difference between a fleeting whim and a long-term goal. But simply handing over a few coins every Saturday isn’t enough; we need to turn that pocket money into a powerful teaching tool.

In The Financial Fairy Tales, we believe that learning about money should be serious fun. Here are five simple games you can play at home to turn pocket money into a lesson in financial responsibility.

5 Simple Pocket Money Games That Teach Financial Responsibility - 3 jars image

1. The Three Jars Challenge

Instead of one money box, give your child three clear jars labelled: Spend, Save, and Give.

  • The Game: Every time they receive pocket money, they must decide how to split it.
  • The Lesson: This teaches “intentionality.” It shows them that money has different purposes, and “Giving” is just as important for a heart-centred life as “Saving.”

2. The “Wait and Double” Game

This is a classic test of delayed gratification, similar to the lessons in The Last Gold Coin.

  • The Game: Tell your child, “If you don’t spend your ‘Save’ jar this week, I will add an extra 10% (or 50p) to it next Saturday.”
  • The Lesson: This is a simple introduction to interest. It shows them that patience literally pays off.

3. The Supermarket Scout

Turn the weekly shop into a treasure hunt for value.

  • The Game: Give your child £2 of their pocket money and a small list (e.g., a loaf of bread and a tin of beans). Their goal is to find the best value items and “keep the change.”
  • The Lesson: This teaches price comparison and the value of research. It turns them from a passive consumer into a “smart shopper.”

4. The “Work for a Perk” Auction

Sometimes, we want things that cost more than our weekly allowance.

  • The Game: If they want a £20 toy, create a list of “extra” chores with a set value (e.g., washing the car = £3).
  • The Lesson: This connects effort to income. It moves them away from “I want” to “How can I earn this?”—a core principle of entrepreneurship.

5. The Family Goal Poster

Visualising success is a key part of the Dreams Can Come True philosophy.

  • The Game: Create a poster of a “Big Dream” (like a trip to the zoo or a new LEGO set). Every time they put money in their “Save” jar, let them colour in a section of the goal.
  • The Lesson: This makes the abstract concept of “saving” feel tangible and exciting.

Turning Games into Habits

By making these games a regular part of your family life, you are building the “money muscles” your child will need as an adult. You are moving them from “Learning” to “Earning” and eventually to “Following their Bliss.”

Want more games and puzzles? Our Financial Fairy Tales: Activity Book is packed with interactive ways to make financial literacy a fun part of every day.

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Why Pocket Money Is Important

April 28th, 2019 Posted in child development, learning about money, Parent Advice
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A child or young person having money of their own is an important rite of passage and pocket money can form the basis of excellent financial education in areas such as budgeting, saving and spending. But it doesn’t have to come exclusively out of your purse or wallet.

A big issue (pun intended), I have with automatically giving pocket money, or an allowance, is that it can easily create an entitlement mentality. Anyone who has seen their teenage child hand on hip, open palmed, demanding cash before going out on a Friday night will know instantly what I mean.

The other place where you regularly get money for nothing is from the benefits system and I don’t believe that many parents are deliberately training their kids down that route!

The importance of pocket money - giving kids an allowance image

One of my favourite money experts, Loral Langemeier is quite definitive on the subject:

“NEVER PAY YOUR KIDS AN ALLOWANCE”

Loral argues that the best investment you can give your child is to teach them the value of entrepreneurship and the way that the economy works. So instead of paying pocket money every week, design exercises and activities that are truly focused on basic finance.

OK you may be thinking but how does this work in practice? Here’s an example, you might sit down with your child and organise some basic household tasks or chores such as doing the dishes or clearing the table.  Work with them to assign a monetary value for each one of these tasks.  Each week as they complete the list, pay them an agreed amount minus a small percentage that goes into a savings account specifically for them. This deduction functions a lot like taxes or regular savings accounts they’d have in the real world.

With teenage children you can add a bit more to this model, including how to manage a bank account, deduct expenses that might make sense given their age, or help save for the things that they’d want to buy.

Why do it this way?  Not only does your child learn the importance of how the economy functions, but they also understand the value of their own work and services.  As they develop their entrepreneurial muscles they may want to take on extra work or start a small businesses of their own. Plus you are automatically encouraging them to save.

Martin Lewis founder of Money Saving Expert and regular TV commentator in the UK is a fan of both pocket money and financial education – and he recommends encouraging children to work for their financial rewards, in order to embed a principle that will serve them well throughout life. Rewards for cleaning the family car or doing the washing up after dinner are great tasks to exchange an agreed amount of pocket money for, but it’s less productive to train children to expect payment for tasks they should be doing anyway, like cleaning their room or doing their homework.

In closing this discussion on the importance of pocket money, a quick word about consistency.

If you promise children a specific amount each week or month, make sure you stick to it. Paying pocket money on an ad-hoc basis will teach them that money promises can be broken; and they will value the money they receive less if you seem to attach little value to the act of giving it.

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Invisible Money – How to teach kids about money in a cashless society

July 17th, 2017 Posted in kids and money, teaching kids about money
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Think for a moment about how many of your day to day transactions are made with actual notes and coins. In a world without cash, what are the implications for teaching children about money?

The Global Issue of Invisible Money

In 2014, the US Parents, Kids and Money Survey suggested 73% of parents agree that because of digital transactions, kids think of money differently than they did when they were growing up. An Australian survey revealed that over one in three (35%) children simply don’t know how digital purchases are paid for. Whilst in the UK consumers recently passed an important milestone on the path to a cashless society, with cash now used for less than half of all payments. These statistics highlight the influence digital technologies can have on how children understand money.

Not seeing physical money exchanged for purchases makes it harder for kids to get their heads around what things cost and how money works. They might not easily see the link between the ‘invisible money’ of online payments or contactless purchases with real money eventually coming in and out of their own bank account.

invisible money how to teach kids about money in a cashless society

Where Money Comes From

It’s not difficult to see how in an age where we can slot a plastic card into a ‘hole in the wall’ and obtain physical currency, or where you can ‘tap and go’ to pay, how our children might not fully understand where the money used to pay for things comes from. One method of explaining this is to describe to your kids the purchase path or the flow of money; from earning it, to depositing into the bank and ultimately the final purchase and receipt.

Making the point of using cash occasionally, rather than electronic funds can also help to provide younger children with a visual representation of how currency works. Once they understand physical money you could slowly introduce them to the idea of online and credit purchases.

 

Pocket Money and Chores

Many parents recognise the value of using pocket money, or an allowance, to teach children about budgeting. Giving your children pocket money in return for jobs around the house can help them understand the connection between time spent doing work and money. A weekly pocket money allowance can also help to develop your kids’ budgeting skills. If you give them a weekly sum which includes both an element for daily routine activities plus some personal discretionary money, it can teach them to prioritise between needs and wants and make choices around spending and saving.

Understanding the True Cost

Mobile phones and tablets make it easier for your children to spend money online sometimes without even knowing it. Another example of invisible money is where many games and apps are now ‘freemium’ – meaning that whilst the app was initially free to download, it will proceed to ask users to purchase special features or content for a fee. If making app purchases is not prevented by a password prompt, then a couple of accidental taps in a game could cause your children to make real-money purchases.

Figures show that 61% of kids are buying apps or making in-app purchases every month, it’s important therefore as parents to establish some ground rules to ensure your child is conscious and aware of the money he or she may spend and its consequences. One useful tip is to ask for the money from your child before they make the purchase to establish the connection that it is still real money.

Setting up a bank account.

Once they are old enough and especially when your child has a job or gets an allowance, having a bank account and watching the balance grow (or shrink) is important. By downloading the bank’s app they can easily monitor and track his or her spending. Another important habit for later in life.

If you can’t beat them join them

The ease and convenience of cashless transactions puts us on an irresistible march towards a cashless society perhaps in your child’s lifetime. Get them prepared early by giving them a prepaid card with a weekly or monthly allowance. These cards can be monitored online and teach the principle that money, whether invisible or not, can only be spent once.

 

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Kerching! Getting It Right When Teaching Your Kids Financial Responsibility

September 26th, 2016 Posted in Uncategorized
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One of the most important things you can teach your kids is financial responsibility. If you inform them of the basics, then you can be safe in the knowledge that they won’t squander everything they have once they move out. Teaching them this important life lesson at an early age will also get them into some good habits, such as saving and budgeting.

But how exactly do you teach your kids financial responsibility? Most of it comes from experience. However, these are some of the things that you can try and instil in them from an early age.

Reward Hard Work

It is important for children to know that the harder they work, the more they can earn. So next time your children spend a couple of hours doing some chores, consider increasing their pocket money accordingly. However, you shouldn’t pay them for all the chores you do. This can help to teach them that some tasks are just part of growing up. The tasks that go above and beyond should be rewarded. And you should remind them that if they go above and beyond in their career, they will reap the benefits.

Encourage Them To Save

Encouraging your kids to save their money from an early age can help them get into good habits for the future. If you do give them weekly pocket money, remind them that it is important not to save it all at once. If they save it in their bank, they can save up for something that they have always wanted. When they are saving, you should also let them know that buying things

this way is a lot safer than taking out unsecured loans. Make sure that older children know that second charge loans are the safer option if they ever run out of savings.

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Get Them Involved With Budgeting

Whenever you sit down to do your monthly or weekly budget, try and get your children to join you. They can then see just how much work goes into planning the family’s money. Give them a chance to make their own suggestions of how you should spend the money. It is also a good idea to take them with you to the supermarket so they can see the money in action. Tell them about coupons and comparing brand prices can help them to save a whole load of money!

Let Them Make Mistakes

At first, your kids might make some mistakes with their own money. They could overspend their pocket money and might end up annoyed when they have none left! You should leave them to make these mistakes and not bail them out. Otherwise, they will never learn the importance of being sensible with their money. After making the same mistakes a few times, they will certainly learn from their mistakes!

You might be wary about leaving your children in charge of their own pocket money at first. But it will certainly pay off, and they will end up being extremely responsible with their finances!

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