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A question of upbringingThe ability to handle money carefully has to be learned. Parents are important role models in this regard: they should explain their buying decisions, financial planning and savings to their children. You can't learn how to handle money if you don't have any. Experts therefore recommend giving pocket money on a regular basis. |
Children who receive pocket money find it easier to learn how to handle money responsibly. Even small amounts make a difference. They give children the experience of allocating and saving money, which also helps boost their self-confidence.
Get the habit early
It's important for children to deal with financial matters openly and at an early stage. As soon as a child can count he or she can be given pocket money. The advisory bodies recommend regular unsolicited payments. For young children they advise giving pocket money on a weekly basis. Monthly payments are more appropriate for older children.
The amount of pocket money given is based on the family's financial capabilities and habits. It should not be linked to any chores, etc. The child alone should decide how the money is used, because children only learn about dealing with money through first-hand experience.
Not too much
Children should not be given too much money. If they can get whatever they want – irrespective of how much it costs – they will never learn how to budget. Children should not have to account for how they use their pocket money. Nevertheless, parents should have a rough idea of what it's being spent on. This helps them to assess their child's needs and decide on an appropriate amount. If parents are unsure, they can ask teachers or other parents for a recommendation.
Part-time jobs
Older children increasingly have wishes that cannot be met from pocket money alone. Young people should therefore be helped to look for a part-time job. Teenagers can top up their pocket money by taking on part-time jobs like delivering newspapers, babysitting or giving tuition. This helps them learn the value of money. It also teaches them discipline and thrift.
Further information
Tips on how to handle money-related issues with young people at home
Advice on how to handle pocket money
Get the habit early
It's important for children to deal with financial matters openly and at an early stage. As soon as a child can count he or she can be given pocket money. The advisory bodies recommend regular unsolicited payments. For young children they advise giving pocket money on a weekly basis. Monthly payments are more appropriate for older children.
The amount of pocket money given is based on the family's financial capabilities and habits. It should not be linked to any chores, etc. The child alone should decide how the money is used, because children only learn about dealing with money through first-hand experience.
Not too much
Children should not be given too much money. If they can get whatever they want – irrespective of how much it costs – they will never learn how to budget. Children should not have to account for how they use their pocket money. Nevertheless, parents should have a rough idea of what it's being spent on. This helps them to assess their child's needs and decide on an appropriate amount. If parents are unsure, they can ask teachers or other parents for a recommendation.
Part-time jobs
Older children increasingly have wishes that cannot be met from pocket money alone. Young people should therefore be helped to look for a part-time job. Teenagers can top up their pocket money by taking on part-time jobs like delivering newspapers, babysitting or giving tuition. This helps them learn the value of money. It also teaches them discipline and thrift.
Further information
Tips on how to handle money-related issues with young people at home
Advice on how to handle pocket money
