Financial Education

Giving children pocket money? Okay, but at what age?

By Mehdi - 15/12/24

Bloon's opinion

A virtuous experience of money requires moderate, age-appropriate amounts, when age itself is not a real issue. Sometimes it's just a matter of "preparing" the child for good practices and managing his or her desires. Some will limit the money to 1 or 2 Euros a week, others will be more generous. But the quality of the experience is reinforced by clear, consensual and respected rules.

Frankly, the reality is: whenever you want! (Besides, who are we to tell you what to do!) In fact, the question you may be asking is more about pocket money than money at all.

Since the legislator is rather discreet on the subject, it's really up to you to decide. In reality, its preoccupations focus more on the flow of dirty money, fraud and what we call in our jargon the LCB/FT (fight against money laundering and the financing of terrorism). But the sums involved go far beyond the scope of this article.

From an educational point of view

Admittedly, there's something almost initiatory, even mystical, about the first pocket money. Even if the child has an incredible capacity to get used to it, and even to find arguments to explain that it's never enough!

In fact, pocket money often coincides with a (relative, but real) necessity. That's why it's often associated with middle school, which marks a major step towards independence: transportation, class changes, or even gastronomic initiatives, like buying a sandwich at the Greek's across the street (the first "restaurant" he'll pay for himself).

The benefits of pocket money

Pocket money is a real emancipation tool. Children no longer need to beg their parents for the latest fashion item, the virtues of which have been extolled by their favorite influencer.

What's more, he has to prioritize his preferences and distinguish between the necessary and the desirable. Of course, he often starts with the desirable and finds himself in a bind when he runs out of money to buy what is really useful.

A frequent problem is defining what pocket money should cover. This is a question that needs to be considered before any amount is allocated: should it cover only extras? And what to do when it runs out?

Another important question is to determine the conditions under which this money is obtained: is it paid out unconditionally, or as a reward for good behavior? It's essential to set clear rules from the outset and stick to them as far as possible.

From what age?

Money can be given as early as the age of 7 or 8, which is the average age at which children begin to receive money punctually. Studies show that adults who have had early experience with pocket money are less likely to experience financial problems, such as over-indebtedness or poor budget management.

However, the rules are changing with the dematerialization of money. Digital transactions make money less tangible: a purchase no longer necessarily involves "breaking a banknote". This reality reinforces the need to accompany pocket money with appropriate tools.

A time for learning and empowerment

Pocket money is also an opportunity to build mutual trust. According to studies in psychology and sociology, managing a budget helps children to delay immediate gratification, which is particularly beneficial in a society focused on instant gratification. It's also a way of learning to live with frustration and develop stress management skills.

In turn, this mastery of desires reinforces the child's self-esteem and sense of pride.

For further information: a few references

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