POCKET MONEY FOR KIDS? Irish Daily Star – Money Doctor column Thursday 27th July 2023
Q. At what age should you start giving your child pocket money, if at all ? I am hearing different methods of dealing with this. We have three children, aged 9, 5 and 3 year old. Tom – Tramore Co Waterford
A. Pocket money first of all Tom depends on parents’ financial situation as well as their own values. Research indicates that parents on average give national school-going children up to € 10 per week, while at second level, children are given € 20 per week and 3rd level a whopping € 60 per week. Even if you can afford the € 10 per week, it might be useful to encourage your children to save some of this for their future needs – like buying Mum and Dad Christmas presents or their own phone credit when of age to have a mobile. Money is a family thing and children should be versed in the basic concepts from as early an age as possible. Your approach and attitude to money will also influence your children. Regardless of your level of wealth, everything you say or do in relation to money will have an effect. Given that they are unlikely to learn much about money from any other quarter and given the way debt continues to spread through society like some super virus, it is obviously important that you should educate your children on personal finance. Pocket money is a good way of starting that process. Bring them to the nearest post office, credit union or bank to open up that account from the age of 7 – the age of reason. Talk to them about money from the age of 2 ! Best wishes