At what age it is appropriate to give a child pocket money?
It seems right to assume that pocket money is a good way to introduce a child to money management (a skill that many young adults today still do not have.) What's the right age to give allowances to children? are there any tools that help children understand the value of budgeting and saving?
1 expert has answered
This is a question I'm asked a lot in the context of teaching children about money management. It does very much depend on the individual child but as a general rule I would say when they start to show an understanding of the face value of money even if that's just 10p or 20p then you can probably introduce the concept of saving through something like pocket money.
Around the age of 5 or 6 if you're lucky a child often starts to help out with chores around the house a bit more so if you're happy to pay them for those (remembering that not every chore should have a monetary value attached to it) then that's also a good opportunity to introduce saving to them.
There are some good tools available to help children understand the importance of budgeting and saving. If you want an app then I'd recommend Goldstar Savings Bank (http://www.goldstarsavingsbank.com/) . Another great resource is MyBnk (http://mybnk.org/) which is a charity delivering financial education directly to schools and youth organisations but it has loads of resources parents can access too.****
Just for interest too, I promoted this link on my Enterprising Child Facebook page recently which looks at money lessons and what kids should know by age 5, 10, and 15. It can only be a guide really because every child and home situation is different, but it provides a useful framework within which to help our children become financially savvy. http://www.forbes.com/sites/halahtouryalai/2013/03/19/money-lessons-for-your-kids-what-they-should-k...