In Australia, each year there are approximately 3.3 million parents giving pocket money to their children. That’s a lot of kids with pocket money to spend. And how much money do these kids receive, exactly? Up to $40 a week.
Forty dollars? Per week? Geez. That’s certainly more than most of us probably received, if we even got pocket money at all. But does giving an allowance actually teach kids the value of money?
In an article for the Daily Mail, some parents shared how they give their children money, and how much. One parent revealed that the amount of money she gives her kids is equivalent to half their age. So her 11-year-old gets $5.50 a week, her eight-year-old $4 and her four-year-old gets $2. She says that the money is theirs and they can spend it on whatever they want or they can save it. But will giving your children money for no apparent reason affect them later in life?
Another parent says she gives her kids $15 every two weeks, given that they earn it. Her offer? Five bucks for a clean room, $5 for taking out the neighbour’s trash and $5 for walking the neighbour’s dog. Similarly, one mother said her daughter receives $10 a week, also based on the chores she completes, such as helping to look after her younger brother and getting ready for school. If her daughter misses a chore, she deducts $1 for every day she misses one. The mom claims it works great and that her daughter has truly taken on a big responsibility with her brother.
For the Australian children who do receive money, this report categorizes, on average, how much weekly allowance they receive. The results are based on a survey of more than 1, 0000 families and are as follows:
- Children between 4 and 8 years of age are likely to receive under $10
- Children between 9 and 13 are likely to get between $5-$19
- 14-16 year olds receive between $10-$39
- One in seven teenagers (14-18 years of age) earn $40 or more
For the children who are given cash, 36 percent of them saved their money for no specific reason, and 28 percent saved their money to buy a larger monthly, quarterly, or yearly item in mind. The study also discovered that more than a quarter of children are not receiving any weekly allowance whatsoever.
Children’s education expert and former school counsellor Pauline Haycraft discusses when parents should pay their kids, how often and how much. Haycraft says pocket money should begin around age seven, or when kids get their second teeth. She says a good tip is to give children $7 when they’re seven, $8 when they are eight, and by the time they are 15, $25 is more than enough and they should be saving by then. Haycraft adheres to the fact that of course, we cannot expect a child to pay for everything with such little money. When it comes to buying their friends birthday presents or attending school trips, they’re going to need more than just pocket money.
Do you give your kids pocket money? How much is too much?