Each week we ask our trusted Insights panel of parents a key question. This week we were interested in finding out what their thoughts are about kids pocket money. It turns out how parents give pocket money is changing from the traditional regular payment, with financial awareness a key issue for parents. Take a quick read of this week’s bite-sized insights to find out what else our trusted panel told us:
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We asked our Insights panel of parents to answer these quick questions:
No, I just give money when they need it 31%
Yes tied to doing chores 31%
No, my child is too young 19%
Yes but ad hoc 12%
Yes on a regular basis 7%
Comments from our panel members included:
“Yes, it is very important that they understand money and finances. I never had it and I am useless with money. We talk about saving money and spending within your means!”
“Yes, I explain what kind of bills we all have to pay for like utilities, cost of running a car etc and when shopping I show them how prices vary and how to look for better value.”
“I tell them about the value of money and explain how much things cost, etc. If they need something I help by doing a budget for them and show them the best way to save and then give them money for chores. I have one daughter saving for an electric guitar so I pay her for extra chores.”
“Sometimes, in terms of budgeting. Not so much about debts so it doesn’t cause anxiety.”
“Yes. The cost of bills e.g. heat, light, bins, television licence, leap card/travel costs.”
“I am a single mother without any support from the father of my children. I am talking with my children about money and finances. They understand we don’t have a lot of money and I cannot afford for everything on high standard. I am very happy that they are so understanding.”
“Yes I do with my older child who’s nearly 11. He asks what different things cost like mortgage, food and how much I get paid! He is getting better and planning and saving birthday money for things he wants.”
“Yes we do shopping list together every week they like to help as they eat most of it all. They understand I don’t always have spare money for days out or cinema so we bake instead or watch old movies at home. It’s good to be open and honest about finances with children.”
“I don’t go into details about money and finances but I encourage them to save up for toys or books that they want by giving them pocket money for doing chores over a few weeks, I think it helps them to understand that saving up is a good thing and it’s better than just giving them things.”
“We talk to them about the value of money – how everything costs something and we can’t just continuously buy whatever we want, how we had to earn the money in order to have it to spend, and how we had to work hard to get a good job in order to be paid that money.”
“My son is 6 and we encourage him to save if there is something he really wants. He does small chores and has a reward chart for good behaviour.”
“Yes, we talk about what he wants to buy, the cost of it and if he needs or just wants it, along with the importance of saving money. I tell him about saving. He has a credit union account and whenever he gets money for birthday Christmas etc he puts some in the credit union. This money isn’t touched as he knows it is for when he finishes school. When he needs something he asks do I want him to do a job so he can get paid. He understands you need to save for a rainy day.”
“Yes. I talk about the value of money and budgeting. I think it is good for children to understand that money doesn’t grow on trees and that you have to work to get what you want. I also talk about the importance of saving – if they want something bigger, they can save €x per week to get that. It also helps them place more value on things if they don’t just get them right away.”
“I would discuss the cost of things – activities and things they look for. I think it’s good for them to value things.”
“We feel it’s essential to show our children the value of budgeting & financial planning as it’s not something we had experience of when we were younger. They are starting to understand the issue of “opportunity cost” which is a life skill :).”
“It’s good to teach them value of money and how working hard means you earn a good wage etc to be able to buy nice things.”
“We do, we have Revolut for my son, he is then able to split his money and save for things as well as use his money how he pleases. We recommend that he saves for the things he wants to teach him to not spend everything in one blow out. We have also shown him how we manage our money including the savings for a deposit on the house and retirement because it is important to learn from an early age.”
“Yes we discuss value of money, pricing in shops, sometimes household finances. That if they really want something they have to save and buy it themselves.”
“Yes we talk about age appropriate things and explain how money is needed to buy things. We explain how she has a choice in spending her money but she has to be careful in what she spends it all on in case she wants to buy something at a later date so we encourage her to put some in her piggy bank and let her spend the rest.”
“By talking about money, it’s more that she understands the value of something she wants. For example, saving for something she would like. Also so she understands that mama has bills, groceries etc to pay for and how that can determine what she receives from me in comparison from other friends.”
“We have explained that things cost a lot of money like toys, so they know they don’t get toys all the time. We give pocket money every now and then and they can save for what they like.”
Reflections for the Financial Sector
- Parents are having conversations with their kids about money and savings. How can you create useful content to help parents have those meaningful conversations?
- Can you create family products that allow parents to give their child discretionary pocket money in easy ways?
- Many parents feel they never had a good financial education themselves, how can you help them educate their children to be more financially literate?
- What savings options are you offering children to get them excited about saving and connecting with your institution?
Would you like insights from parents for your business? Talk to our panels of engaged mums and dads, using our dedicated private platform to gather critical insights to help influence and activate them. Contact us now to find how we can help.