A survey by the Raising Children Network found that more than two-thirds of children are paid pocket money by the time they are six and usually get $2 a week. Children that are 11 are most often paid $5 a week and nearly half of 12-year-olds receive $12 a week. Two-thirds of parents give their children weekly pocket money and 70% ask their children to help out around the house to earn their money.
Matt, from Maroochydore, said he gives his children pocket money each week, but they have to earn it. “They can earn up to $2 a week each, but they have certain jobs they must complete around the house to receive it. They help with laying the table, making their beds, sorting the laundry, things like that.”
And, like more than half of Australian parents, Matt says he withholds some of his children’s pocket money if they misbehave. “They can lose some of their pocket money for poor behaviour. We give them their pocket money weekly and always make a point of reminding them why they didn’t get their full $2, and encourage them to try and get their full amount the following week.”
The Australian Securities and Investments Commission said pocket money teaches kids the value of money and helps them understand concepts such as saving, spending and donating. It outlines a few methods parents can use to encourage their kids to start saving their pocket money:
For more useful hints and tips, visit the Money Smart website here.
Read our tips on Raising financially savvy kids.