Organising your kid’s birthday party can be tricky enough without having to worry about making goodie bags and party favours.
What is the Standard Amount for Kids Pocket Money Today?
The topic of kids pocket money can cause a lot of stress at home. Because let’s face it, as parents, we know that these things add up and tend to be quite a hefty expense.
When you’re trying to figure out how much you should give, you might be torn between your natural instinct to provide for your children and to make sure that all the household bills would be taken care of.
So, how much pocket money should you really be giving your kids?
To answer this age old question, we decided to survey 2,000 Australian parents, and the results were both interesting and shocking!
According to the survey, we found out that this is the amount that children get per week depending on the age:
If you can go back in time real quick, and remember the pocket money which you got from your parents, you would realize that the numbers are extremely far from what is considered “the standard” today.
Of course, due to the ever increasing price of goods, the allowance we give our kids should go up as well.
Spending, Saving, and Investing Money for Kids
So, what should your children do with their pocket money? Since this is pretty much practice for when they start to earn their own cash, you should already impart the knowledge of saving, spending, and investing/donating.
A common rule for this is save 50%, spend 40%, and invest or donate 10%.
For savings, open a children’s bank account for them or use a piggy bank. Personally, we would go for the bank account so that your kids will get used to transacting with a bank.
In spending, teach them to spend on wants versus needs.
For investing, set up a mutual fund for your child, and this would accumulate over the years.
For donating, ask your child what organization or cause is important to him/her and that’s where you donate the money.
How You Should Give Pocket Money to your Child?
According to the survey, parents give their children pocket money when they do certain tasks. This lets the kids know that money has to be earned. The most popular tasks are:
- Household Chores (cleaning the house, washing the dishes, etc.)
- Making the bed in the morning and keeping the bedroom tidy
- Good grades at school
However, you should also let your children know that they would not be paid for every action that they do. At the end of it all, proper guidance is a must, especially in the younger years of your kids.
To sum it all up, the amount of pocket money that kids receive has increased over the years. However, the rules have stayed the same. When you give your children pocket money, make sure that you guide them properly so that they grow up with good money management skills.
Now, let’s send this over back to you. Based on this article, kindly answer the following questions in the comments section below:
- How much do you currently give your children?
- What tasks should your kids do to earn the pocket money?
- How much pocket money did you get when you were a kid?
- Were you happy with the amount which you received?
Your answers could help thousands of parents regarding this topic, so your input would be really appreciated.