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Pocket money tips

Pocket money meaning

Explore pocket money for kids and how to make it meaningful.

Getting pocket money right

Pocket money is a way to reward children for doing household chores or good work. It could boost their understanding of budgeting, spending and saving.

But it may be useful to define clear pocket money rules and expectations so your kids don’t take it for granted.

Read on for pocket money ideas that could teach children life lessons and ensure it has real meaning.

5 tips on giving pocket money

Setting pocket money can be tricky to start with. Here are some ways to give pocket money meaning so it doesn’t just become a handout.

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1. Choose the right amount

Working out how much pocket money to give is different for everyone. And you may even decide it’s not right for your family. Think about:

2. Decide how they’ll earn it

Linking pocket money to chores or achievements might show your little ones the value of hard work. Completing weekly or monthly tasks could make pocket money more satisfying and prepare them for future employment.

Consider drawing up a pocket money chart, listing different chores for each child, and when they need to be done.

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3. Be clear about your expectations

Set clear boundaries to avoid misunderstandings around pocket money.

4. Use pocket money to teach budgeting skills

Pocket money can give kids their first taste of budgeting and financial independence. Here are some of the conversations it could start:

  • Encouraging children to track their weekly spending.
  • Showing them how to set short and long-term financial goals.
  • Teaching the value of saving, as well as spending.
  • Explaining the difference between the things children want and what they actually need.
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5. Give your kids some independence

Once you’re up and running, it may be worth giving your kids some freedom over their spending and budgeting.

They’re bound to make mistakes in the early days – whether overspending, buying items they don’t need, or forgetting to do their chores. But it’s all part of their learning journey and a way to build financial confidence.

Pros and cons of pocket money for kids

From budgeting skills to financial independence, there are plenty of potential benefits of pocket money. But watch out for the risks too.

Pros

  • Showing the value of money. Pocket money may encourage children to take cash seriously. For example, looking at prices or deals more closely.
  • Getting future-ready. A pocket money chores list could make the link between work and earning clearer, preparing kids for the UK jobs market.
  • Breaking down barriers. Openly talking about spending and saving decisions might make youngsters feel positive about money.
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Cons

  • Risk of tension. Failing to communicate expectations, or how much pocket money you’ll give, may cause misunderstandings.
  • Feelings of envy. Whether you’re working out pocket money for a 6-year-old or 15-year-old, it’s helpful to do some research. Setting the bar too high or low might create envy between siblings and friends.
  • Overstretching yourself. It’s important to include pocket money in your own budgeting plans.
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How can parents pay pocket money?

When paying pocket money, think about your child’s age and financial confidence. There are plenty of options to choose from.

Pocket money apps and prepaid cards

A kids pocket money app could keep track of chore lists, rewards and spending priorities. They often come with prepaid debit card options too.

NatWest Rooster Money is our pocket money app for kids aged 3-17, with a prepaid debit card option from age 6. Parents can set spending limits and see what their kids are buying. And children can only spend what you’ve added to the card.

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Card for ages 6-17. Parent/guardian must be 18+ and a UK resident. £19.99/yr or £1.99/mo. Other fees may apply. T&Cs apply.

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Bank transfers

Does your teen have their own bank account? If so, you could pay money in with a bank transfer.

Our Adapt child and teen account is available to 11-17 year-olds who are UK residents. 11-15s must apply with a parent or guardian who has a NatWest current account.

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Account eligibility and app criteria applies. 11-15s must apply with a parent or guardian with a NatWest current account.

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Cash payments

You can choose to keep things simple with coins and banknotes.

A piggy bank could get your kids saving money from a young age as well.

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Pocket money FAQs