Pocket Money: Fixed, Earned or Both?

For children aged roughly 7 to 12, pocket money can be one of the best teaching tools, because it gives them real money to manage.

Three common approaches

1. Fixed allowance: a set amount each week or month, regardless of chores. It teaches budgeting, because children know what they’ll get.
2. Earned money: payment for extra tasks. It links work and income.
3. Hybrid: a small fixed amount plus opportunities to earn more for extra jobs.

The chores debate

Should children be paid for household chores?

• For: it teaches that money comes from work.
• Against: some parents feel everyday chores, like making the bed, are part of being in a family and shouldn’t be paid, so children don’t expect payment for helping.

Many families choose a middle path: no pay for basic chores, but payment for extra jobs, such as washing the car or helping in a family business.

How much?

There’s no right amount. It depends on family income, age and what the child is expected to pay for. Some families increase pocket money with age and expand responsibilities, for example making older children responsible for their own snacks or stationery.

Making it work

• Be consistent: pay on a regular day.
• Set clear rules: what pocket money should cover.
• Don’t rescue too quickly: if a child spends everything early, let them wait until the next payment.
• Encourage saving goals.
• Talk about decisions without judging too harshly.

Digital pocket money

Some families use bank accounts for minors or prepaid cards with parental controls, letting older children manage digital money with limits.