The question of how kids can make money is one that many youngsters will soon ponder, as things like ice creams, trainers and video games become more appealing.

For the average UK family, a weekly spending allowance for children is quite a common concept. That said, receiving money without any action or responsibility being taken is not typically something many adults experience. Teaching this at an early age could therefore be considered counterproductive.

You could try changing this logic by only offering your child’s pocket money, or altering the amount of pocket money, based on their help around the home. This kind of pocket money should help to cement the idea that money is something you are rewarded with and doesn’t often come without hard work first.

Earning money through chores

There are two ways to pay children for completing chores: 

1.  Pay-per-chore: This involves setting a specific price for each task completed and paying the child once they finish it. 
2. Chores unlock your allowance: This approach doesn't assign a value to individual chores, but instead requires children to complete all of them within a week or a portion of them to earn a proportionate amount of their allowance at the end of the week.

Looking for ways to assign chores to your kids? Our ‘Pocket Money Chores List’ below includes some popular options that can help them earn their allowance:

 Chores for 5-7-year-olds

• Putting toys away
• Putting clothes in the laundry basket 
• Making the bed
• Tidying their bedroom/play area

• Helping set / clear the table 
• Watering plants 

Chores for 8-10-year-olds

• Any previous chores
• Loading dishwasher/washing dishes
• Putting clean dishes away
• Helping prepare dinner
• Vacuuming 
• Folding laundry/sorting socks 
• Looking after or feeding pets 

Chores for 10-12-year-olds

• Any previous chores
• Taking bins out 
• Cleaning the kitchen 
• Cleaning the bathroom 
• Small gardening tasks

Chores 12+ year-olds

• Any previous chores
• Ironing 
• Mowing the lawn 
• Washing windows 
• Washing the car 
• Cooking dinner

How much pocket money should you give?

When deciding on how much pocket money to give your children, there are several factors to consider. The amount of chores they complete, the number of children in your household, your income and your expenses should all be taken into account. However, recent research has provided a rough guide for how much pocket money children should receive each week based on their age, using UK averages.

• Age 4: £3.21
• Age 5: £3.24
• Age 6: £3.65
• Age 7: £4.19
• Age 8: £4.44
• Age 9: £4.77
• Age 10: £5.40
• Age 11: £6.34
• Age 12: £8.25
• Age 13: £9.76
• Age 14: £11.64

Children’s money is often spent on a number of different things. In their infancy, it’s sweets and games but as they progress into the teenage years, money becomes more of a driver as the prospect of shopping for clothes, going out with friends and even buying a car, all become a reality.

When moving into adolescence, peer pressure to have the latest thing starts to creep into a child’s conscience. At this point it becomes very important for young people to understand the difference between a want and a need.

Mastering the art of contentment and delayed gratification will give your teen more financial freedom. Try teaching that finding their clothes on Depop or Vinted is a cheaper and more sustainable way to keep up with fashion trends. Likewise, buying a second hand car will still get you from A to B and you don’t need to own all the latest gadgets to keep up with your mates - you can become the master of one.

 

For many young people, the first time they truly require a bank account may be at university or when starting their first job. At which point, the expectation is that they now understand how to manage funds digitally, budget for the month and keep on top of their finances.

You can give your children a head start by allowing them to set up a child’s saver account which will help them to practice money management. Here at Furness we have a number of different savings accounts suited to young people that will empower them to understand their cash a little better and encourage them to start saving.

Check out our beginner’s guide to money management for more handy hints and tips, for young people and adults alike.