.png)
There was lots of excitement in my house this week as 2 bright blue cards dropped through our letter box! Monzo now has a free Under 16s account where your child gets a debit card and you can set up pocket money and savings pots. The excitement waned a little when I explained there was no money on the cards!
My son has been asking for a Go Henry card for ages but I was reluctant to pay the monthly subscription so I was delighted when I spotted Monzo had launched their free children's bank account. If you don't have Monzo check out this post by @moneytothemasses with other free pocket money apps to try.
We have never given our children pocket money before, but we would like to start so I asked how much pocket money people give on my IG stories and the results were so varied.
What you said about pocket money:
Lots of people give weekly pocket money. Here were the most common amounts:
50p
£1
£2
£2.50 per week
£5
Some people added that their children can earn more through chores. Examples of chores - hoover, lay table, feed cat, empty dishwasher, make beds, take plates to the dishwasher.
Other people give monthly pocket money. Here are some examples:
£1 per year of age
£2.50 per week plus £25 per month into savings
£5 per month for impulse buys and £5 for things they want to save for
£10 per month
Articles you recommended:
This article by Sarah Ockwell-Smith is well worth a read if you are thinking about starting pocket money and had some interesting takeaways.
These are the two that stuck out to me.
"Once you have given your child their pocket money that money is no longer yours. That means you don’t get a say in how they spend it."
I find it so hard when they want to buy tat! But if I want to use pocket money as a tool for learning about money, letting them decide how to spend it is an important part of the lesson.
Many people said pocket money is linked to chores or their child can earn extra. I watched a clip of Martin Lewis saying his child's pocket money is linked to a job because he wants his child to understand that money is something you work for. But he recommends that the job is not their own job e.g. tidying their bedroom.
Sarah Ockwell-Smith said this: "Don’t tie pocket money to chores – ever. Once again the pocket money is unconditional. Paying children for helping around the house is a recipe for disaster. It may seem a great idea initially, but the novelty will soon wane and you are likely to create a “what will you give me if I do it”? child, who is reluctant to help unless they get paid. Chores are a part of everyday life, a part of living in a family. Everybody should be expected to chip in and nobody should get rewarded for them financially."
Ultimately, it’s a matter of personal choice. Only you can decide what works best for your family.
This Go Henry blog post has lots of tips too.
I had a really interesting chat in my DMs about how to help our children learn what to do when they get money rather than automatically spend it! They sent me a link to this article about a 4 part method to help children learn how to manage their money.
@mrssmartmoneyhq shares a similar system using 3 jars in this IG post.
"💫The Spending JarThe Spending jar is for living in the now. This money is used as a direct reward for earning their pocket money. ( If your kids are anything like mine, it will be probably handed over to the nearest sweet shop. ) This helps you avoid giving in and randomly purchasing treats for them when you’re out and about. Instead, this money gives them the independence to get what they want. 💫The Saving JarThe money in this jar was not to save up for college or long-term things I would teach them about later. Instead, this jar is to help kids to grasp the concept of delayed gratification and the satisfaction of saving up for something they want, like toys or games. 💫The Charity JarThe Charity jar is my personal favourite. The money goes to a charity of the child’s choice. This jar is a great way to instil generosity and giving back."
IG account to follow:
Emma @poundsandpiggybanks shares lots of great posts to help you navigate teaching your child about money and is well worth a follow! This is an area that isn't really covered in school and will make sure a difference to your child's future.
What we have decided:
We have decided to give them each £2 per week, which will be deposited into their account every Monday. I thought if it went in on a Monday they would have a week to think about what to do with it before being out and about at the weekend! Hopefully, it won't all disappear on sweets!
I am going to chat with them about starting saving pots on their account. Benji has his sights set on buying a iPad. A £2 per week he has a way to go! We aren't linking it to chores and at the moment there will be no option to earn any extra. I am going to give it a couple of months and review it.
I'd love to hear your thoughts on pocket money in the comments below.
Comments