Research into pocket money and financial socialisation suggests that the way pocket money is given can shape what kids learn from the experience.
Kids who receive regular income (predictably and at regular intervals) save between 1.5 - 4.6 percentage points more, than kids who don’t receive regular income.* Findings published in the LSAC Annual Statistical Report for 2018 showed that consistency in pocket money is more important than the amount paid or whether pocket money is tied to chores, cultivating a ‘saver’ personality type.
Here are five things to consider when giving your kids pocket money, from frequency of payment to how much freedom to give them.
There’s no single “perfect” amount of pocket money for every family, but we recommend choosing an amount that encourages decision-making.
What matters is giving kids enough room to make meaningful choices. Having a limited amount can encourage them to compare options, decide what matters most and sometimes wait for something they really want.
Those little trade-offs are where some of the learning happens.
💚 Kit Money Lesson: Choose an amount that works for your family while still giving your kid opportunities to decide between spending, saving and waiting.
There is no recommended pocket money schedule for kids; however, a regular pocket money routine can make it easier for them to plan ahead.
Knowing when their next payment is coming and roughly how much they’ll receive gives them something concrete to work with. Over time, this can create opportunities to practice deciding what to spend now, what to save for later and how to make their money last.
💚 Kit Money Lesson: Try setting a regular payday and amount, it can help kids get used to planning between payments and working towards longer-term savings goals.
It can be tempting to step in when your kid wants to spend their money on something you wouldn’t choose yourself. But making their own age-appropriate decisions gives kids the chance to think about what matters to them and learn from the outcome.
💚 Kit Money Lesson: If your kid needs help, try asking questions like “Do you think you’ll still want this in 24 hours?” or “What will this mean for your savings goal?” to help them think through their choice.
Running out of pocket money before the next payday can feel disappointing, but it can also create a valuable learning moment. Let the wait become part of the lesson.
Instead of immediately topping up their money, you can use the opportunity to talk about what they spent, what they might want to do differently next time and how they could plan for something they know they want.
This gives kids a chance to experience the outcome of their choices while the stakes are still small.
💚 Kit Money Lesson: Help them make a plan for their next payday. You might ask, “Is there anything you want to make sure you keep some money aside for next time?”
Pocket money can be even more valuable when it comes with simple, everyday conversations about money.
Research highlights the role parents can play in guiding kids as they build financial knowledge and habits. That doesn’t mean every payday needs to turn into a big money lesson – sometimes a quick question is enough.
💚 Kit Money Lesson: Ask about what they’re saving for, what they’re thinking of buying or how they felt about a recent purchase. These small conversations can help kids reflect on their choices and build confidence making money decisions.
Pocket money creates plenty of opportunities for small money conversations. You don’t need to have all the answers – asking a few open questions can help kids think through their choices for themselves.
Try asking:
These conversations don’t need to be long or serious. Small check-ins and everyday moments can encourage kids to pause, reflect and become more confident making their own money decisions.
Every pocket money moment can be a chance to learn – and starting these conversations early can help kids build confidence with money and understand its value as they grow.
If you’re looking for more ways to talk about money at home, Kit’s free Smart Money Playbook is packed with simple, practical ideas to help make everyday money conversations easier.
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Sources:
*Kit data, March – September 2025.
Dániel Béres, Aranka Mészáros, Zsuzsanna Hanák, & Erzsébet Németh. (2024). THE ROLE OF POCKET MONEY IN THE FINANCIAL SOCIALIZATION OF YOUNG PEOPLE. International Journal of Business and Society, 25(3), 1253–1272.
Australian Institute of Family Studies (2019), Longitudinal Study of Australian Children: Annual statistical report 2018.