approx. 4 min read
Children should learn early on how to handle money. The best way to do this is with their own money. Managing pocket money correctly is not always easy. Here you will find information on giving pocket money.
How much pocket money and from what age?
Children should receive pocket money regularly. But how much? The amount depends on the child's age and the parents' income. The right age to start giving pocket money is when they start school. Once they have learned to count, children develop a sense of quantities and sizes.
Guidelines for pocket money amounts
Find out together with your child what needs and wants arise over the course of a week. This way, the costs incurred can be calculated – and thus the appropriate amount of pocket money. The following formula can be used as a guideline: 30 to 50 cents x years of life = pocket money per week.
|
Age |
Euros per week |
|
6 years |
1.80 – 3.00 |
|
7 years |
2.10 – 3.50 |
|
8 years |
2.40 – 4.00 |
|
9 years |
2.70 – 4.50 |
|
10 years |
3.00 – 5.00 |
|
11 years |
3.30 – 5.50 |
|
12 years |
3.60 – 6.00 |
*The guidelines are provided by the Austrian Erste Bank & Sparkasse
Pocket money is not a reward
Your child must be able to plan with a regular "income". Withdrawing pocket money when they have misbehaved is not a good idea. The child should decide for themselves what to spend their money on. And they should learn to make it last. If this is not successful, you should talk to them about their behavior: What was the money spent on? A "household budget" for short periods of time or specific areas (leisure activities) can also help plan spending.
Spend or save?
Pocket money is generally intended to be spent. Earned money or money gifts from grandparents, on the other hand, can be saved. Set up a savings account for this purpose. Your child may have a say in how their savings are used.
8 pocket money tips for parents
- Children may use their pocket money freely
Your child decides what to use their pocket money for. In principle, they can spend their own money on whatever they want – as long as it does not harm them.
- Regular payment is a prerequisite
By paying the pocket money on time, your child experiences that agreements are kept. Weekly payment has proven successful until the 12th birthday, from the age of 13, payment can be switched to monthly.
- No advance or top-up of pocket money
If you give your child a financial advance or top up their money, they will not learn to manage their needs. Money can run out and not all spontaneous wishes can always be fulfilled. Recognizing this is an important learning process.
- Pocket money is not an educational tool
Pocket money is paid out regularly. An increase for good school grades or a withdrawal for bad behavior makes pocket money a reward or punishment. Thus, it loses its function of teaching children to act independently.
- Do not force children to save
If you force your child to save, they will perceive it as being patronized. A better method to make saving appealing to your child: If parents set a good example when saving, it is usually better received by their children.
- Pay extra for additional tasks
If your little one does household chores that go beyond the usual scope, they deserve a reward. These tasks should not be compensated by the regular pocket money.
- Not for basic needs
School supplies, food, and clothing do not have to be paid for with pocket money. If your child feeds themselves during the day, you must give them money separately for this.
- The amount of pocket money
Too little pocket money can lead to your child being excluded from their circle of friends – for example, if they have to save for 3 months to go to the cinema once. On the other hand, if the pocket money is too high, your child will not learn to set priorities or make sacrifices.
Hopefully, these tips will help you when the time comes to talk about pocket money!
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Your Anio Team!
