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The valuable lessons parents can teach their kids when giving out pocket money
Pocket money can help give children the building blocks for a financially fit future, according to an expert.
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Your support makes all the difference.The new year means a new financial start – and for some parents this will involve starting to give their children regular pocket money and encouraging them into some good money habits along the way.
Parents are paying a weekly pocket money average of £9.62 per child, according to data from GoHenry, a debit card and financial education app for children and young people.
The weekly average ranges from £3.69 for six year olds to a peak of £17.89 for 16 year olds. Young people aged 18 receive slightly less, at £14.52, with some likely to be supplementing parental payouts with their own jobs.
The five most popular tasks in 2024 according to the data, were tidying the bedroom (£1.18 paid on average), putting away clothes (97p), making the bed (£1.25), doing homework (£1.42) and reading every day (£1.35).
But the highest-paid task in 2024 was babysitting, paying £5.32 on average, according to GoHenry’s data.
Louise Hill, CEO and co-founder of GoHenry, says: “Pocket money is more than coins and chores – it’s a hands-on way to teach kids the building blocks for a financially fit future.
“If you’re thinking about starting pocket money in 2025, even small amounts – whether it’s 5p or £5 – can teach kids so much.
“Pairing pocket money with simple chores helps kids learn the value of hard work and that money doesn’t grow on trees. It’s also a chance to introduce the core pillars of money management – earning, saving, spending, and giving – to help build lifelong skills such as budgeting, separating needs from wants, and the impact of saving.
“Providing regular pocket money also opens up conversations around money in the home, turning real-life moments – such as deciding what to buy at the supermarket – into powerful money lessons they’ll carry into adulthood.”
Here are Hill’s tips for parents thinking of starting to give their children pocket money in 2025:
1. Start young
Hill says: “Starting conversations about money with kids, tailored to their age, such as teaching them about the four main pillars of money management – earning, saving, spending and giving – lays the foundation for a solid understanding of personal finance in the future.”
2. Give something, whether it’s 5p or £5
Instilling the value of money doesn’t mean shelling out large amounts of cash.
Hill says: “Encouraging a regular pocket money routine by introducing simple house chores such as tidying your bedroom or emptying the dishwasher can teach kids the value of earning.
“The amount doesn’t have to be big; what matters is giving children some money they can manage and make decisions about. It’s a powerful way to empower your kids, regardless of the sum.”
3. Teach the budgeting basics
“A good way to begin is by explaining the difference between needs and wants,” says Hill.
“Start by showing them how to divide their money for spending and saving, creating good habits from a young age.”
4. Make saving fun by getting creative with savings goals
“Use a digital piggy bank or find a savings account that earns interest to make it exciting for kids as they see their money grow,” suggests Hill.
5. Teach some real-life lessons
“Help your kids learn about responsible spending by turning it into a fun activity,” suggests Hill.
“Take them to the supermarket during your next grocery trip and let them make decisions and negotiate purchases with you. It’s a great way to introduce real-life money lessons.”