For the majority, pocket money is a system which encourages reward for effort. Helping kids get to grips with the basics of money is one thing, but the concept of earning is another important idea that an allowance or pocket money could help foster.Īfter all, most families aren’t just handing over cash to their kids. Of course, this also comes with the added lesson that money is finite, so they’ll have to spend their money wisely!įun fact: 78% of parents pay their kids pocket money in cash! The tangibility of coins or notes could be a benefit for younger children just getting familiar with money, though it’s not unusual for parents to organise a bank card for older kids given the greater flexibility and convenience it can provide. Pocket money can also be a great way to start giving your kids the freedom to make their own financial decisions – namely, what they would like to spend their money on and where they would like to spend it. Setting up an allowance can help kids get to grips with basic concepts like the different forms money comes in (coins, notes or even a digital balance) as well as the various ways money can be transacted (via cash, cards, smartphones, digitally etc.) So what better way to start teaching children about the fundamentals of finance than with their own money? It’s an important part of life, and something kids are naturally curious about.

Like it or not, it’s hard to downplay the significance of money.

Pocket of money