Parents are increasing the amount of pocket money they are handing over to kids but there’s important measures they need to implement to help children become good money managers.
And once children earn their cash, many are choosing to save it.
Mother-of-three Christy Jones, 49, ensures her three sons do their bit before handing over $7 per week to each child digitally.
“They get money for doing their daily chores including making their bed, setting the table and helping with the washing,” she said.
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READ NOW“Sometimes we’ll be out at the shops and they will want to buy Pokemon cards and we’ll look at their app online to see if they have enough money.”
The trio use the RoosterMoney app which tracks their pocket money and completed chores digitally.
Mrs Jones said this made it easier to monitor than handing over cash, which she rarely carried.
RoosterMoney’s latest research of 8600 Australian four to 14-year-olds found 70 per cent of parents gave their child a regular allowance last year.
The average amount handed over was $10.25 a week, up 12 per cent.
And the average amount saved is 44 per cent of pocket money received.
The most lucrative chores include mowing the lawn, washing the car and washing windows.
Tribeca Financial chief executive officer Ryan Watson said there was no correct amount of pocket money to give kids.
“Depending on the child’s age, starting pocket money at $5 per week is a sensible place – not too little, but not too much,” he said.
“Where possible, giving kids physical pocket money will give them a better foundation for understanding money. Kids find it a lot harder to spend physical money and seem to make better financial decisions.”
The research found the main things kids spent money on included lollies, books and magazines, presents, Lego, online games Roblox and Fortnite, PlayStationsand apps.
RoosterMoney chief executive officer Will Carmichael said a regular pocket money allowance was important.
“You need to tell them they need to be a good citizen and do their chores weekly, fortnightly or monthly to get their pocket money allowance,” he said.
“They need to do certain jobs around the house, and then encourage them to set a goal to save towards something.”
Mr Carmichael said this way children knew money was coming, which allowed them to set goals and start thinking about something bigger to save towards.
“That gives them focus and empowers them,” he said.
“Then let them make some decisions. You can guide them.”
sophie.elsworth@news.com.au