How do you give your child their pocket money? Do you have any conditions to it such as they must clean their room etc? Do you give pocket money as a reward or to teach money management? There doesn’t seem to be a definitive answer to these questions as it seems pocket money means something different to each parent I ask.
I had no clue what the pocket money going rate was for my 6 year old daughter. After speaking to other parents I realised I was being screwed over (self inflicted I set a figure and rolled with it). On average the parents I spoke to were giving their children £2- £2.50 per week.
After a bit of research I found an amazing app called GO Henry it’s for children from as young as 6 years old upwards. Most bank accounts which are free for kids start when they are around 11.
I’m not a financial expert far from it, I’m not a broke mum for no reason, therefore I am in no way qualified to say if this is the best app on the market it just works for us.
My daughter has a contactless bank card with her name on it. You can customise them at an extra cost but I didn’t opt for that. Parents can top up as and when they want to. I currently have a set amount going into the card each week via direct debit so that I don’t have to think about it. The card can be used as a debit card in shops and online to purchase all the fun exciting things that a child could want. In other words my daughter is able to buy all the crap I refuse to buy for her.
I must say she’s a lot more selective about the stuff she “really really needs” now she has her own money.
You can set up several saving goals specifying and amount and the date you want to achieve the figure. The money is then taken every week and becomes unavailable from the spending balance.
You can set incentives too where the child can earn extra money. I set up that if my daughter tries a new food she will get £2.00. It’s been 3 months and she’s not tried one new food yet. 😐
All purchases are tracked and you get notified every time the child uses their card, this is especially good for older children to keep an eye on their spending.
You can set spending limits too broken down into a weekly spend, a single spend limit and a cash machine limit.
The app costs £2.50 per month but the fact my daughter can manage her own money like this is invaluable to me. She has already vowed to save money for a trip to Disney World we have planned, which is great as I didn’t have that kind of discipline at 26 years old let alone 6.
Here’s a referral code where you get the card free and 1 months subscription https://goo.gl/Dm8HY9