26/07/2026
💳 Pocket Money – One Size Doesn't Fit All
Last week, I wrote about the importance of setting clear expectations before giving your children or grandchildren their summer allowance.
This week, I'd like to take it one step further.
I recently read an article about pocket money during the summer holidays. One statistic really stood out: more than half of parents transfer money whenever their child asks, rather than sticking to a regular allowance.
As parents and grandparents, we all want to help. But sometimes, by topping up their allowance, we miss an opportunity to teach one of life's most valuable financial lessons: how to manage money within a budget.
Children of different ages need different financial lessons.
👧 Ages 8–12 – Learning the Basics
At this stage, pocket money isn't about independence—it's about understanding money. Children begin to learn the difference between needs and wants, that money is limited, and that saving for something special takes time. They also discover that they can't buy everything they see.
👦 Ages 13–15 – Learning Responsibility
This is when pocket money becomes a budget. Teenagers start making more of their own spending decisions—whether it's snacks, outings with friends, or entertainment. The goal is to help them plan ahead, prioritise their spending, and make their allowance last.
👩 Ages 16–18 – Preparing for Adult Life
As teenagers become more independent, their allowance should begin to resemble a salary. If they have a summer job, even better. This is the perfect opportunity to teach budgeting, saving, and making informed financial decisions before they enter adulthood.
The amount you give your child is important—but the lesson they learn from receiving it is far more valuable.
By teaching good financial habits while the amounts are still relatively small, we're helping our children develop the confidence and skills they'll need when they begin earning—and managing—their own money.
💬 How has your approach to pocket money changed as your children have grown older? I'd love to hear your experiences in the comments.
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