How Much Pocket Money Should I Give?

We’ve pulled together some tips and averages to help give you a steer. Giving pocket money in the right way (however much) can teach your kids skills and confidence in money matters and give them immense satisfaction, especially if you encourage your kids to earn it.

At Rooster, we look at kids’ earnings in two different ways. The first is regular weekly pocket money, which is pocket money in its traditional sense, given to kids on a routine basis as a recurring allowance be that weekly or monthly. The second is their overall income, which is regular pocket money plus payments for doing extra chores, one-off rewards and treats for things like tooth fairy visits or doing well at school. This takes into account all the different ways that money finds its way to kids from their parents. Here are the weekly pocket money averages received by NatWest Rooster Money kids, split by age.

Budget what you expect your children to cover with their pocket money and consider setting a regular allowance to help cover the basics. It’s surprising how the small things can add up. One way of working this out is to look at “Wants” versus “Needs”. You can decide what needs you want to cover and what wants they should be covering themselves.

It can also be a great way to get your child involved and thinking about budgeting. Getting them to add up all the things they get from you a week, by way of sweets and other treats, will show them how much you spend on them. If they have to cover their own chocolate and toys, you can bet they will start thinking more carefully about how they spend their money.

Of course you’ll be able to add money on top of any regular routine, for ad hoc rewards or extra chores kids complete.

Set out some rules so your kids are clear on how they’ll earn their pocket money. Giving money regularly and with certain rules keeps your kids focused and able to budget.

You can create rules around anything, like the successful completion of a reward chart, or even a batch of basic jobs you expect your kids to do as a ‘minimum’ each week and tie that to the Regular Pocket Money given. Agreeing a small amount of ‘income’ for these rules gives your child something to focus on and lets them anticipate what they should be doing with their cash when they get it.

“Earning” money is hugely satisfying for kids. While you can always give them a regular allowance, don’t forget you could also inspire your kids to earn some extra cash through odd jobs too. For example, you can explain that emptying the dishwasher is about contributing to the family and a requirement of their allowance. Whereas cleaning the car or tidying the garden can be a bonus to earn extra money. Remember, small amounts are fine, your kids can develop their negotiation skills as they go and take on more responsibilities.

Outside of chores, you could keep your kids motivated by rewarding achievements and good behaviour with additional boosts to their pocket money. Maybe your child has aced an exam, completed a piece of homework that even had you stumped, or has been practising their instrument religiously. Have a think of the areas your child has seen big success or small improvements, and give them the motivation to keep on achieving with a money boost.

And, in case you’re wondering, the most popular pocket money day is Saturday.

Most importantly, every family is different and there are so many different ways to start to introduce kids to money. Whatever the amount of pocket money you give your kids and however you decide to do it, you can give them a head start with the Rooster Money pocket money App. It helps you and your kids track pocket money digitally. Click here to find out more about Rooster Card and all its features. Eligibility criteria apply.

The data in this article is compiled from our 2023/2024 Pocket Money Index research report.