When it comes to pocket money, every family is different. Some parents may give their kids a set amount each week, while others may tie it to chores or extra tasks. No matter how you approach pocket money, it’s an essential tool for teaching financial literacy for kids. By helping them manage their own funds, you’re equipping them with skills that will stay with them for a lifetime.
Our latest research reveals that children who use GoHenry collectively earned a staggering £219 million in 2022. This impressive figure didn’t just come from regular pocket money; it also includes gifts and the completion of paid tasks. Interestingly, the average weekly pocket money across all ages was £7.54 per child, with 14-year-olds seeing a 2.5% increase, earning an average of £12.15 each week.
But what’s the right amount to give your little one, and should you be rewarding chores with extra pocket money? To help you make the best decision, we’ve gathered insights from parents, experts, and our own research to give you a solid understanding of the typical pocket money amount, as well as the benefits and considerations for teaching kids about money.
Weekly Average Pocket Money by Age in the UK
Our research indicates that pocket money increases with age, as children gain more responsibility and understanding of money management. The average weekly pocket money for kids varies, but the overall average in the UK for 2022 was £7.54 per child. Here’s a breakdown of the average weekly pocket money by age:
- 6-year-old: £3.04 (2022) | £3.46 (2021)
- 7-year-old: £3.26 (2022) | £3.59 (2021)
- 8-year-old: £3.67 (2022) | £3.99 (2021)
- 9-year-old: £4.12 (2022) | £4.50 (2021)
- 10-year-old: £4.90 (2022) | £5.27 (2021)
- 11-year-old: £6.21 (2022) | £6.56 (2021)
- 12-year-old: £8.14 (2022) | £8.34 (2021)
- 13-year-old: £10.31 (2022) | £10.15 (2021)
- 14-year-old: £12.15 (2022) | £11.87 (2021)
- 15-year-old: £13.76 (2022) | £13.74 (2021)
- 16-year-old: £14.68 (2022) | £15.11 (2021)
- 17-year-old: £14.48 (2022) | £14.79 (2021)
- 18-year-old: £12.28 (2022) | £13.66 (2021)
The Importance of Pocket Money in Teaching Financial Literacy for Kids
It’s not just about how much money they get – the purpose of pocket money is key. From a young age, kids can start to learn essential financial skills like budgeting, saving, and spending wisely. Parenting expert Tanith Carey, author of What’s My Child Thinking?, explains, “Until around seven, money is still an abstract concept. By introducing pocket money at a regular interval, children can begin to understand the connection between earning and spending. A weekly allowance also teaches kids that money is a limited resource they must manage.”
The Gender Gap in Pocket Money
While gender plays a role in how pocket money is distributed, our research shows that boys, in general, tend to receive more pocket money than girls. For instance, 14-year-old boys earn an average of £11.83 per week, a 5.1% increase, while 14-year-old girls earn £11.68, a 0.1% increase. Similarly, 13-year-old boys saw a 4% increase, earning £10 per week on average, compared to £9.61 for 13-year-old girls.
Should Pocket Money Be Tied to Chores?
This is a personal decision for each family, but research shows that tying pocket money to chores can be beneficial for teaching kids about responsibility. When children understand that money is earned through effort, they develop a work ethic that can set them up for success later in life.
Beth Zemble, VP of Education at GoHenry, says: “Earning money through chores helps children appreciate the link between work and financial gain. It’s about showing them that to earn money, they need to put in the effort.”
Here are some helpful tips for paying your kids for chores:
- Set clear expectations: Outline what chores your children are expected to do and the payment associated with each task.
- Be consistent: Pay them on time every time they complete a chore.
- Be flexible: If a child struggles with a task, work with them to make adjustments.
- Make it fun: Turn chores into a game or challenge to keep kids motivated.
Popular Chores and Their Costs
In our research, we found that some tasks were more commonly completed than others. Below is a list of the top 10 chores, ranked by the number of times they were completed, along with the average pay for each:
- Tidying room: £1.02
- Making bed: £0.81
- Loading/emptying the dishwasher: £0.88
- Putting clothes away: £0.71
- Homework: £1.18
- Brushing teeth: £0.72
- Reading every day: £0.96
- Taking out rubbish/recycling: £0.77
- Getting ready for school: £0.77
- Feeding pets: £0.92
These tasks teach kids the value of hard work and help them understand how everyday chores contribute to running a household.
Regional Differences in Pocket Money
Our research also highlighted how pocket money varies by region in the UK. The most significant drop in weekly pocket money was observed in the North East, where the average fell by 7.2% to £6.84 per week. On the other hand, London saw only a slight decrease of 0.7%, with the average weekly pocket money at £9.96.
Here’s how the weekly pocket money averages broke down by region:
- London: £9.96 (2022) | £10.03 (2021)
- Scotland: £8.09 (2022) | £8.14 (2021)
- South East: £7.85 (2022) | £7.93 (2021)
- East: £7.49 (2022) | £7.65 (2021)
- North West: £7.04 (2022) | £7.38 (2021)
- North East: £6.84 (2022) | £7.37 (2021)
- South West: £6.78 (2022) | £7.04 (2021)
- Yorkshire & The Humber: £6.77 (2022) | £7.11 (2021)
- Wales: £6.58 (2022) | £6.91 (2021)
- East Midlands: £6.57 (2022) | £6.85 (2021)
- West Midlands: £6.46 (2022) | £6.85 (2021)
What Should Pocket Money Be Used For?
Deciding what your child’s pocket money should be used for is a critical step. While it might seem tempting to use pocket money for treats and toys, it’s better to include children in conversations about budgeting and saving. Explain what their pocket money is for – whether it’s for small indulgences or savings for a bigger item – and ensure they learn to distinguish between “wants” and “needs.”
As Tanith Carey suggests, “Regular pocket money teaches children to control their impulses and build the patience to delay gratification.”
Top Tips for Deciding How Much Pocket Money to Give
Here are a few key tips to help you decide how much pocket money to give your children:
- Consider your family’s budget: Decide what you can afford and make sure to factor in other expenses like treats, outings, and clothes.
- Pay weekly: Establish a regular pay schedule to help children learn to budget over time.
- Make it a learning experience: Talk to your kids about the purpose of their pocket money and encourage saving.
- Set expectations for saving and spending: Ensure that your child understands both the importance of saving and the consequences of overspending.
Set Up Pocket Money Payments with GoHenry
If you’re considering an easy way to manage pocket money, GoHenry offers a prepaid kids’ debit card that helps cement the money lessons you teach your children. The GoHenry app offers features like Money Missions, where kids can earn points by learning about saving and spending through interactive videos and quizzes.
Whether you’re teaching financial literacy for kids or helping them learn the value of their first paychecks, a digital payment tool like GoHenry makes it easy to manage and track pocket money. Plus, it’s a great way to introduce kids to banking, while still giving parents full control.
