Q – At what age should you start giving your child pocket money, if at all ? I am hearing different methods of dealing with this. I have three children, aged 9, 5 and 1 year old. Jeff – Carlow
A – Pocket money Jeff first of all depends on parents’ financial situation as well as their own values. Recent 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, up to 25%, for their future needs – like buying Mum and Dad Christmas presents or their own phone credit when of age to have a mobile. Get them to open a post office, credit union or bank account – tell them how interest is earned though they won’t be too excited at the current returns ! 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 during their lives. 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 is spreading through society like some super virus, it is obviously important that you should educate your children on all things financial. Pocket money is a good way of starting that process but it also gives you the ability to talk about money in a sensible way. Well done on the family Jeff.