How much pocket money should we give our kids?

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If mothers can afford to give pocket money to their children, then much more often than not they will pay them in cash.

One survey suggests that 84% of British parents dedicate notes and coins to their children, typically an allowance – including some discretionary spending – of PS7 a week.

Yet, by 2028, banks predict that for every 10 occasions when adults buy something, they will merely use notes and coins once. For the remainder, we will mostly use cards or digital payments.

So what will that mean for the nation’s children? Will today’s youngsters be learning about money employing currency that is close to obsolete? Will mothers have to find a new way of paying pocket money, or decide not to bother paying at all?

Experts say that paying a small amount, however infrequently, can help youngsters learn about money and budgeting.

It seems that the children themselves agree, especially if pocket money depends on completing chores.

Nine-year-old Yusuf says: “It is constructing you feel like when you are older and get a job – when you do stuff and get paid for it.

Image caption Yusuf says lessons about adulthood can be learned through pocket money

“But plainly you are going to get more when you are older, rather than simply 50 p a day.”

Pocket fund surveys rarely agree on the going rate for children’s allowances. The Halifax, part of Lloyds Banking Group, has been running such a survey since 1987, which is one of the most well-established.

Its latest findings indicated a wide range of average quantities in different parts of Britain. Others indicate the Halifax estimate of the typical weekly payment is rather high, but there is general agreement that cash is currently the preferred choice.

Research has suggested that money habits are set by the age of seven. At a session of head teachers and authorities on Wednesday, some will call for better financial education in primary schools.

Whatever infants are taught at school, a few pennies at home – starting in cash – can go a long way, according to Sarah Porretta, of the government-backed but independent Money and Pensions Service.

Her advice for parents includes 😛 TAGEND Get children started with fund as young as is practicable Don’t fret how much to give in pocket money, or how often Parents who have no money at the end of the week should still talk to their children about financing of the choices they make Media captionFive tips-off to get kids to save Image caption The RoosterMoney app allows youngsters to set savings objectives

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