Pocket Money for Kids: How Much and Earning Ideas

Pocket money is an incredibly effective way to teach your kids about money management and financial responsibility. Together, you can have conversations about spending, saving and budgeting their pocket money to build their confidence and independence, and prepare them for the realities of the adult world at an early age.

But how much pocket money should you give your child? Should they earn it through chores?

This article explores pocket money ideas, earning jobs for kids, and even what the Tooth Fairy could leave!

How Much Pocket Money Should I Give My Child?

The decision of how much pocket money to give, or whether to give it at all, is ultimately up to you.

It’s definitely worth mapping out what you expect them to spend money on and work out a ballpark figure from there. You might want to set parameters, such as limiting in-game purchases to a certain amount or capping spending on collectible items to a specific value.

A recent survey suggested the average weekly pocket money amount in the UK is around £5 per week so that might be a good place to start, if you're unsure.

As children get older, their understanding of money also evolves. A six-year-old may be thrilled with £4 or £5 per week, while a 14-year-old may have more needs, possibly requiring £10 or so. Pocket money could increase with their age, reflecting their growing responsibilities and needs. Involving your children in these financial conversations can help them develop a sense of responsibility and a better understanding of money.

It might be a good idea to give them a piggy bank or a safe place to keep their pocket money, rather than just leaving it in their pocket - that way, it’s less likely to get lost and they’ll always know where it is.

Find out if your child is ready for our bank account today.

Jobs Kids Can Do to Earn Pocket Money

Here are some ideas of age-appropriate pocket-money jobs you can test drive with your kids to get them earning, spending and saving with confidence in no time at all.

Ages 5-8

• Tidy away toys
• Water plants
• Help pair socks
• Feed pets

Ages 9-12

• Wash the car
• Help put the food shop away
• Empty the dishwasher
• Wash the pots
• Set and clear the table
• Vacuum the house
• Basic gardening tasks

Ages 13-16

• Playing with younger siblings
• Mow the lawn
• Iron clothes
• Wash up dishes
• Help prep meals

As kids get older, it’s a great time to start introducing the idea of budgeting. It helps them think ahead and plan for things they might want or need in the future - like saving for a special toy, a day out with friends or even gifts for family. Learning how to balance spending and saving now can build good habits that last a lifetime.

The TSB Under 19’s Bank Account is designed to help young people get comfortable managing their money while learning essential financial skills. Benefits of our Under 19’s Account include:

• Easy online banking to track savings
• Set and monitor savings goals
• No monthly fees
• Resources to assist with budgeting and money management

Tooth Fairy Traditions: How Much Should She Leave?

In short, how much the Tooth Fairy should leave for each tooth should only ever be as much as parents want to give. It’s about the tradition rather than the amount, so don’t fret over how much to leave. You may also choose to give a gift rather than money.

To make things even more fun for her visit, why not get creative with some Tooth Fairy ideas? Write a tiny little letter from Her Toothiness telling your little one how brave they are, use glittery coins or even create a teeny tiny Tooth Fairy door on the skirting board of your child’s bedroom. Not only is it magical for them, but it can give you a really good giggle to organise while they’re fast asleep with their old tooth tucked safely under their pillow.

If you choose to give money, consider having similar conversations as mentioned above - perhaps putting this into a savings account for their holiday spending or for that special toy they've been eyeing every time you've gone into town.

Saving vs Spending: Teaching Good Habits

Here are a few of our top tips for how to teach your children about money.

Talk about needs versus wants

Learning how to prioritise what to spend on is an important life skill, so be sure to explain that you should always spend on your needs before you think about spending on your wants.

Teach them how to spend, save and share

The “spend, save and share” method is a simple yet effective way to teach kids about how to manage and split their money. It helps them to organise their pocket money into three categories: what they can spend straightaway, what they can save for another day and what they can share with others. If they're going on holiday, it might be a good idea to set aside a specific amount for spending during the trip.

Discover our TSB savings accounts for children.

Encourage positive spending habits

Money should never be a taboo subject, so encourage healthy spending habits with your child by speaking about money with them in day-to-day life. Involve them in easy budgeting tasks, such as talking through what things cost at the supermarket or showing them how much money goes toward your household bills, for example.

Read our guide on how to save for your child’s future.

Let them make small money mistakes

Allow your child to make small money mistakes here and there so they can learn from them. For example, if you give them £5 to spend in the shop, they may spend it all on sweets they don’t like rather than ones they do, or on a toy they don’t end up using - it can help kids understand the valuable lesson of budgeting versus impulse spending.

Find the perfect bank account for your children and build their money confidence.

We make it easy to bank in the way that’s best for you, with speed and convenience at your fingertips and someone to talk to when you need to. Get in touch today if you need any advice on managing your everyday money.

TSB’s Under 19 bank account:

• This account is for kids and teens who are 11 to 17 years old
• If the child is under 16, a parent or guardian will need to help open an account
• If the child is over 16, they can apply on their own if they have 2 forms of ID and proof of address

TSB Savings accounts for children:

• You need to be 16+ and UK resident to open most of our savings accounts with the exception of Savings Pots and TSB ISAs.

Young Saver:

• The child doesn’t need to be there to open a Young Saver either over a video call or in branch
• The minimum deposit for each Young Saver is £1
• You can only open one Young Saver per child
• To open the account you must be 18 or over, a UK resident, and a TSB current account holder

TSB Bank plc is covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service