Pocket Money and Beyond: Teaching Your Pre-Teen About Money
When should you start pocket money? How much? And how do you teach an 11-year-old about money without boring them to death? A practical UK dad's guide.
You hand your 11-year-old a tenner for the cinema. They come back with no change, a bag of overpriced pick and mix, and a confused look when you ask where the rest went.
Sound familiar? Financial literacy doesn't come naturally. It's taught — and dads are in a brilliant position to teach it, because most of us have made every money mistake going.
When and how much: the UK picture
What other families are doing
The latest data from pocket money surveys paints a clear picture:
| Age | Average weekly pocket money |
|---|---|
| 6-7 | £2-3 |
| 8-9 | £3-5 |
| 10-11 | £5-7 |
| 12-13 | £7-10 |
A simple rule of thumb that works: 50p to £1 per year of age per week. So a 10-year-old gets £5-10. Adjust for your budget — there's no right amount.
Tip: Use the NetDads Pocket Money Calculator to work out a fair amount based on age and chores.
Conditional or unconditional?
This is the big debate. Two schools of thought:
Unconditional pocket money:
- They get it regardless
- Teaches that everyone deserves a baseline
- Chores are part of family life, not transactions
- Risk: no incentive to contribute
Earned pocket money:
- Linked to chores or behaviour
- Teaches the work-money connection
- Mirrors real life
- Risk: they negotiate everything ("I'll tidy my room for £2")
The best approach is probably a hybrid: A small base amount unconditionally (£2-3) plus the option to earn more through extra tasks (washing the car, helping in the garden, organising a cupboard). This gives them security plus agency.
Teaching money skills by age
Ages 6-8: The basics
At this age, focus on:
- Coins and notes — physically handling money (most kids rarely see cash now)
- The concept of saving — a clear jar where they can see money accumulating
- Wanting vs needing — "Do you need that toy, or do you want it?"
- Waiting — if they want something, make them wait a week. If they still want it, they value it
Practical exercise: Take them to a shop with £5. Let them choose what to buy. Let them pay. Let them count change. This is more valuable than any lecture.
Ages 9-11: Building habits
Now you can introduce:
- A simple budget — divide pocket money into Spend (50%), Save (30%), Give (20%)
- Saving for a goal — something they want that costs more than one week's pocket money. Work out how long they need to save
- Price comparison — "This game is £15 here and £10 there. What's the smart choice?"
- The value of time — "That toy costs £20. At £5 a week, that's 4 weeks of pocket money. Is it worth a month of saving?"
Practical exercise: Give them a budget for their own school supplies or a family meal ingredient shop. They plan, you supervise.
Ages 11-13: Real-world money
Pre-teens are ready for:
- A bank account — most UK banks offer children's accounts from age 11 (HSBC, Barclays, NatWest). Go in together and open one
- A prepaid card — GoHenry, Rooster Money, or Revolut Junior. These let you set spending limits, track their spending, and they learn to manage a digital balance
- Budgeting for activities — give them a weekly/monthly amount for their social life. When it's gone, it's gone. No bailouts (mostly)
- Understanding debt — explain borrowing in simple terms. "If you borrow £10, you have to pay back £12. So everything costs more when you borrow"
- Compound interest — show them a compound interest calculator. The realisation that saving £5/week from age 12 could be worth £5,000+ by 18 is genuinely mind-blowing to them
The money conversations worth having
"Why can't we just buy it?"
"Because we have to choose how we spend our money. We have bills, food, and saving for important things. We can't buy everything, so we pick what matters most."
Don't shy away from honesty. You don't need to share your exact salary, but kids benefit from understanding that money is finite and choices are real.
"Are we poor?"
This one catches you off guard. Try: "We have enough for what we need, and we're careful with money so we can do nice things too. Different families have different amounts, and that's okay."
"Why do you go to work?"
"Because I need to earn money to pay for our house, food, and the things we enjoy. But I also work because I want to be good at something and contribute."
"Can I earn more money?"
Yes! Encourage entrepreneurial thinking:
- Car washing for neighbours
- Dog walking
- Selling old toys/games online (supervised)
- Helping with specific tasks beyond normal chores
- Lemonade stand / cake sale (classic for a reason)
Tools that help
Prepaid cards for kids
These have transformed how kids learn about money:
| Card | Age | Monthly cost | Features |
|---|---|---|---|
| GoHenry | 6-18 | £3.99/month | Custom card, tasks, savings goals, parental controls |
| Rooster Money | 6-17 | Free (basic) | Chore tracking, pocket money management, star chart |
| Revolut Junior | 6-17 | Free (with adult Revolut) | Spending notifications, instant transfers, tasks |
All of these let your child see their balance, track spending, and learn that digital money is real money.
The NetDads finance tools
- Pocket Money Calculator — work out a fair weekly amount
- Child Cost Calculator — understand the bigger picture of costs
- University Savings Calculator — start planning early
Common mistakes dads make
- Bailing them out every time. If they blow their pocket money on Monday and want more on Wednesday — tough. Natural consequences teach faster than lectures
- Never talking about money. British culture says money talk is rude. Ignore that. Your kids need to understand it
- Not modelling good habits. If they see you impulse-buying, they'll do the same. Talk through your decisions: "I was going to buy that but I'm going to wait and see if I still want it next week"
- Making it too complicated too early. A 7-year-old doesn't need to understand compound interest. Keep it age-appropriate
- Linking pocket money to school grades. This creates anxiety around learning and sends the message that education is transactional
FAQ
Should I pay for chores they should do anyway?
Most parenting experts suggest separating basic household responsibilities (tidying room, setting table) from "extra" earning opportunities (washing car, deep cleaning). Basic chores are part of being a family. Extras can be paid.
My child keeps losing money. Should I replace it?
Once, with a conversation about looking after things. After that, no. It's a cheap lesson compared to losing a wallet at 25.
When should I stop giving pocket money?
When they start earning their own money (part-time job from 13+). You might transition from pocket money to a monthly "allowance" that covers their social spending, at which point they're managing a real budget.
The best financial education doesn't happen in a classroom. It happens when a 10-year-old saves up for three months for something they really want — and the look on their face when they buy it themselves.