Is there such a thing as the ‘right’ amount of pocket money and if so, how do you calculate it?
It’s a conundrum that parents face every single day as they try to balance their budgets with teaching their kids the value of money as they grow older and more independent.
On average, parents dish out £6.48 a week on pocket money with a fifth basing this on household chores, according to Halifax bank.
One in 20 splash out £20 a week or more, just under one in five do not pay any pocket money at all and for others, it all depends on how much they can afford that week.
But one mum says £6.48 is far too much.
Keely Mitchell bases her payments on chores, good behaviour and a marble jar which she says teaches her children about gratitude and hard earned money.
Keely has three children, Violet aged 10, Joyce aged six and Walter aged three. Instead of paying them equally, she pays them in marbles, with a full jar equal to a sum of cash.
“To learn the value of money means that you need to appreciate there is no money tree and that throughout life you only earn money if you work for it,” Keely said.
The financial services manager lives with her partner, Raymond Walker, in Watford.
She argues the £6.48 sum money is “too high” – but admits it all depends on the child’s age.
“The average weekly pocket money of £6.48 seems a bit high for my younger children who are four and six but I think it’s about right for an older child,” Keely said.
“My eldest daughter Violet is 10 and I would feel comfortable giving her that much – although I could see much more than that going in the blink of an eye on online gaming.”
Keely uses a marble 'rule' to determine how much her kids get and when. For every household chore or example of good behaviour, they get a marble to add to their jar.
Once full, the jar is converted into cash based on how much the family can afford at the time. That means they have full control over how much they can earn - and how quickly they can get it.
“We have a ‘marble’ system in the house,” she explains. “Every time one of the kids does a good deed they get a marble in their own jar and once the jar is filled I convert it into cash.
“It’s a great motivator for good behaviour, as they can see their ‘money marbles’ growing in the jar, and can compete with their siblings!”
She said how much each jar equates to is all down to what she can afford and the item they are saving up for.
“Sometimes it’s not actually the treat that makes them happy – it’s the happiness which comes from them ‘beating their siblings’ to filling the jar up! They are generally very proud of themselves.
“£20 for a four-year-old is way too much, but to a 10 year old earned over two weeks of good behaviour and chores, it’s quite reasonable."
Keely says struggling parents should not compare themselves to others. In fact, she says in the long run, smaller payments will make them even smarter with their money.
“Give to your means, make sure you get something in return for your investment and let them see and touch it and spend it themselves," she said.
Emma Abrahams, head of savings at Halifax, says it’s also important to have open conversations about money with your children – even when it comes to debt.
“Kids have picked up new chores at home, despite a fall in pocket money received compared to last year, now coming in at £6.48 per week,” she said.
“This is likely to be reflective of a difficult year financially for many, with our research also showing that the majority of parents have worried about money more due to the pandemic.
“Having open conversations as a family about budgeting will help build kids’ understanding of money management and will start the process of building good habits for the future.”
