Give a regular, predictable amount of pocket money, split it into save, spend and give, help your child set a saving goal, and let them make small mistakes, then talk about what happened.
Why pocket money works
Talking about money is useful; managing it is better. Even a small, regular amount teaches budgeting, patience and choices in a way lectures cannot.
The three-jar system
| Jar | Purpose |
|---|---|
| Save | For a goal that takes a few weeks to reach |
| Spend | For small things now |
| Give | For gifts or charity |
Younger children understand money better when they can see it, so physical jars work well at first.
Set a goal
Help your child choose something they want that takes a few weeks of saving. Draw a chart and colour it in as savings grow. Reaching the goal teaches delayed gratification: one of the most valuable money lessons of all.
Needs vs wants
Make it a game when shopping: is this a need (food, school shoes) or a want (a toy, a snack)? Children quickly learn that wants are fine, but they come after needs.
Let mistakes happen
If your child spends everything on day one, do not top it up. The disappointment of having nothing left for the rest of the week is a powerful, low-cost lesson. Talk about it calmly afterwards.
Ideas by age
- 6–8: counting money, coins and notes, simple saving jars
- 8–12: weekly budgets, saving goals, comparing prices
- 13–18: bank accounts, digital payments, budgeting for bigger goals, how interest works
Digital money
As payments go digital, money can feel less real. Showing children digital balances, and talking about how card and app payments still spend real money, matters more than ever.
Our Financial Literacy (ages 8–12) course uses a guided simulation with in-game money, and Financial Literacy (ages 13–18) covers budgeting and investing basics. Budding business owners can try Young Entrepreneurs.
Frequently asked questions
What age should children start getting pocket money?
Many families start around 6 to 8, when children can count money and understand that it runs out.
How do I teach my child to save money?
Use a save jar, set a goal that takes a few weeks to reach, and track progress visually.
Should I give extra money if my child spends it all?
Usually not. Running out is a valuable, low-cost lesson: talk about it calmly afterwards.
How do I teach teenagers about money?
Introduce budgets for bigger goals, bank accounts, digital payments and the basics of interest and investing.
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Written by the Learning Bubble teaching team. If something here does not match your situation, ask us. We would rather give you a straight answer than have you guess.