Pocket money can be a powerful tool for teaching children the basics of financial literacy. But how much pocket money is appropriate? Let’s dive into research-based insights to help UK parents decide.

Why Pocket Money Is Important
Giving children pocket money allows them to:
Understand the Value of Money: Learn what things cost and how to prioritise spending.
Practice Saving: Develop patience and goal-setting by saving for bigger purchases.
Build Confidence: Gain independence in managing their own finances.
Introducing pocket money early provides a solid foundation for future financial skills.
Pocket Money Guidelines for 2024
According to recent UK studies, the amount of pocket money children receive often depends on their age and family circumstances. Here’s the average weekly allowance by age group:
Age | Average Weekly Pocket Money |
6 years old | £3.50–£4.00 |
8–11 years old | £7.00–£8.00 |
12–14 years old | £10.00–£12.00 |
15–16 years old | £12.00–£15.00 |
Sources: Shepherds Friendly, UK surveys (2024)
These figures are just benchmarks. The exact amount you give should reflect your family’s financial situation and the lessons you want to teach.
How to Decide the Right Amount
Consider Age and Needs: Young children need less, while older kids may have more expenses, such as mobile phone top-ups, social outings, or school supplies.
Match Your Budget: Only provide what your household can comfortably afford. Pocket money should be a learning tool, not a financial burden.
Link It to Financial Goals: Encourage your child to allocate their pocket money for spending, saving, and even charity.
Use It as a Teaching Moment: Introduce simple money concepts like budgeting or the importance of saving a portion of their allowance.
Regional Variations
Pocket money amounts can differ significantly across the UK. For instance, a survey by Santander in 2024 revealed the following average monthly pocket money by region:
London: £95.90 per month (approximately £22.30 per week)
North East: £16.60 per week
Scotland: £14.40 per week
North West: £12.20 per week
West Midlands: £10.70 per week
Wales: £10.60 per week
Yorkshire and Humberside: £8.90 per week
East Midlands: £8.20 per week
South West: £7.30 per week
South East: £6.70 per week
Northern Ireland: £6.40 per week
East of England: £6.30 per week

Should Pocket Money Be Tied to Chores?
This is a personal decision, and both approaches have their benefits:
Tying to Chores: Helps children understand the relationship between work and earnings. For example, completing tasks like tidying their room or washing dishes could earn them their allowance.
Independent of Chores: Gives children a sense of responsibility and participation in the household without associating chores with financial rewards.
Many parents use a hybrid model, giving a baseline allowance and offering extra opportunities to earn more through additional tasks.
Tips for Making Pocket Money Meaningful
Set Clear Expectations: Explain what the money is for and how they can manage it.
Introduce Saving Challenges: Encourage saving for larger goals, like a toy or gadget.
Use Visual Tools: Younger children benefit from jars or piggy banks labelled "Spend," "Save," and "Give."
Encourage Discussions: Talk to your child about financial decisions and help them learn from mistakes.
Final Thoughts
The amount of pocket money you give your child isn’t as important as the lessons it teaches. Whether it’s learning to save, plan, or make thoughtful spending choices, pocket money is a stepping stone toward financial independence. Start with an amount that fits your budget and your child’s needs, and use it to instil good money habits that will last a lifetime.
By making pocket money a learning experience, you’re setting your child up for future financial success.
Book a Smartmonies lesson today and help your child begin building essential financial skills! Get £10 off with the code SMARTSAVER
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