5 Simple Tips for Pocket Money for Kids

Teaching kids about their own money, saving money versus spending money is so important. Here are a couple of different ideas to think about pocket money for kids.

Pocket Money for Kids – Tip #1

Some parents give pocket money for certain jobs to be done around the house while others give their kids pocket money without expecting any jobs to be done to earn it. Personally our family doesn’t put a monetary value on each of job in particular (but we did find this handy when they were younger), we just expect that our kids complete a list of jobs each day and week from feeding the animials, doing the dishes, folding washing, mopping and vacuuming, mowing the lawn etc etc. and then give them pocket money for contributing to the family. Have a chat to other parents about what they do with giving their kids pocket money, think about their opinions, then work out as a family what suits you.

Pocket Money for Kids – Tip #2

Pay your kids pocket money on a set day. For example every Friday once a week, fortnight, or 4 weekly. Personally we give our kids pocket money 4 weekly as that’s when we get paid. I find it helps to breakup their spending, saving and giving easier, and helps the family budget as well, as we pay our bills once a month.

Pocket Money for Kids – Tip #3

Use the 50%, 40%, 10% rule – After teaching your kids about the family budget help them draw up a budget of their own to work out how to split up their pocket money.

  1. Save/Investing 50%
  2. Spend 40%
  3. Donate 10% to a church/charity (knowing that you sacrificed something such as time or finances etc. in order to help others in need gives a great sense of purpose in life and inner satisfaction, and you will find that kids LOVE to give to those less fortunate)

 Pocket Money for Kids – Tip #4

The 3 Jars System – Consider using three jars one for saving, one for spending and the other for donating which allows your children could put money into each jar and have a visual on what is happening in each jar. This method helps your kids understand the difference between saving and spending.

 Pocket Money for Kids – Tip #5

Get your kids to pay for small expenses from their pocket money or even money they receive for their birthday eg. Like going to the movies if there is something special they just “have” to see. This can help your kids work out how far money will actually go.