How Much Pocket Money Should We Give Our Kids? A Guide for UK Parents (2025)

Giving pocket money is more than just handing over coins — it's one of the first steps in teaching kids about money. As the cost of living continues to rise in the UK, many parents are re-evaluating how much pocket money is reasonable, age-appropriate, and educational.

A recent GoHenry Youth Economy Report revealed that UK children earned an average of £322 in pocket money in 2023, showing a steady increase over the past few years. But what does this mean for your family in 2025?

Let’s break it down.

Why Give Pocket Money?

Giving pocket money isn't just about treats and toys. It provides real-life opportunities for children to experience money management for children firsthand. When kids are entrusted with even a small amount of money on a regular basis, they naturally begin to think about how to use it wisely.

They may start to budget for the things they want, save toward a bigger goal, or reconsider an impulse purchase. Over time, this builds stronger financial literacy for kids, setting the foundation for responsible financial behaviour as they grow up.

How Much is Enough?

There isn’t a one-size-fits-all answer. The right amount of pocket money depends greatly on your child's age and maturity, as well as your own household budget. Another key factor is what the money is intended for — whether it’s for occasional treats, regular savings, or covering school-related costs like lunches or stationery. Keeping these elements in mind can help you decide on an amount that feels both fair and purposeful.

UK Averages for 2025

Here’s a quick look at national pocket money trends:

• Ages 5-7: £2 - £3 per week

• Ages 8-10: £4 - £6 per week

• Ages 11-13: £6 - £9 per week

• Ages 14-16: £10 - £15 per week

  
  

These figures can serve as a baseline. You can adjust them based on your child’s maturity and the responsibilities tied to 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

Pros and Cons of Pocket Money

Like any parenting tool, giving pocket money has its ups and downs.

Pros

• Encourages independence and responsibility

• Provides early exposure to money skills for children

• Creates opportunities for step-by-step money lessons for kids

Cons

• Can become expected rather than earned

• Might cause peer pressure if friends receive more

• Hard to maintain consistency during tight financial months

To avoid these downsides, consider linking pocket money to chores or achievements. That way, children connect effort with reward.

Should Pocket Money Be Tied to Chores?

This is a hot topic for many parents. Some argue that kids should learn to contribute to the household without expecting payment. Others believe it’s a great way to show the value of work.

A Balanced Approach

You might:

• Give a base allowance each week

• Offer small bonuses for extra tasks

• Use a point or reward system

This hybrid method promotes financial education for children while still encouraging a sense of family duty.

Smart Ways to Use Pocket Money for Learning

Transform pocket money into a tool for growth with these fun ways to teach kids about money:

1. Use Jars or Digital Tools

Split money into categories like Spend, Save, and Share. Physical jars work well for younger kids, while apps like RoosterMoney or GoHenry are perfect for older children.

2. Set Saving Goals Together

Help them save for a toy or trip. This teaches patience and planning — key parts of budgeting for kids.

3. Encourage Giving

Introduce the idea of donating a portion to charity. This promotes empathy and shows that money isn't just for personal gain.

Tips for Parents: How to Make the Most of Pocket Money

Here are a few practical suggestions:

• Be consistent. Choose a set day and amount.

• Talk openly about money. Make discussions a normal part of life.

• Encourage mistakes. It's better they overspend £2 now than £200 later!

You’re not just giving money — you’re giving your child a head start in life.

Final Thoughts

Pocket money is one of the simplest yet most effective tools in teaching kids about saving and spending. Whether you give £2 or £20 a week, what matters most is how you use that opportunity to instil smart money habits for children.

So, how much should you give? Start small, stay consistent, and focus on the lessons rather than the amount. With the right approach, your child won’t just learn to count coins — they’ll learn to value them.

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