In seminars I am often asked about pocket-money and whether it should be earned or only given when children behave well.

My belief is that children should receive pocket-money as their small share of the family-wealth just as they should share the workload at home. This is not to say that the family income is divided equally between all members. Rather, children are given a realistic sum of money, given their age, needs and ability to deal with money.

It makes sense to provide guidelines about spending including letting them know just what they are expected to buy. A child in lower primary school may get enough to purchase some sweets and one or two other items, whereas a child in upper primary school may get enough to cover lunch orders, bus money and some treats. An allowance that covers clothing can be useful for adolescents who can be very costly to outfit in the latest fashions. Let them know you will buy the basics items and that they can make up the difference between brand names and basic items from their pocket-money.

Pocket-money can teach children a great deal about goal-setting. By encouraging children to save for a big ticket item such as a bike or skateboard children learn a great deal about planning and looking ahead, the value of budgeting and experience personal satisfaction of reaching a goal

When used in this way, pocket-money is an excellent way to develop independence in children and young people.

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