Pocket money around the world: varied and alternative practices for global financial education

Pocket money is a universal practice, but it is far from uniformly applied around the world. In some regions, it is a crucial educational tool, while in others it is replaced by alternative methods of financial learning. This article explores how different cultures and economies deal with this issue, and the impact of these practices on children's development.

1. Pocket money practices around the world: cultural and economic comparisons

United States :

‍Ina context where pocket money is often linked to household chores, around 70% of American parents use this system to teach their children the value of work and money(USDA). Amounts vary according to age and family income, with an average of $8.25 per week at age 10, rising to $17.64 at age 16. This practice is designed to give children a sense of responsibility and instill in them a notion of saving and planning.

United Kingdom:

Pocket money in the UK is largely dissociated from household chores, and the amount increases with age, reaching around £20.89 per week for a 16-year-old(USDA). The rise of children's bank cards reflects a shift towards digital money management, allowing parents to oversee spending while instilling budgeting concepts.

France :‍

In France, pocket money is given on a regular basis and not directly linked to performance or tasks, with an average of €12 per month for a 10-year-old child, and €40 for teenagers. The emphasis is on autonomy and responsible financial management, without the pressure of monetary reward for daily tasks(USDA).

Japan:

Japan favors teaching savings and social responsibility with moderate amounts, between 500 and 1000 yen per week (around €4 to €8). Children also receive "otoshidama" at New Year's celebrations, a sum often saved for important future expenses. The "kakeibo", an expenditure register, is used to develop financial management skills(USDA).

Germany:

In Germany, pocket money is often linked to school performance and participation in family life. Amounts, ranging from €5 per week to €50 per month, increase with age and responsibility. The notion of merit is central, and children learn to save for long-term goals, such as buying a bike or a computer(USDA).

2. Countries where pocket money is little used and why

Sub-Saharan Africa :

In many African countries, pocket money is scarce, mainly due to economic insecurity and the need to contribute to family income. Children often take part in agricultural or craft tasks, and are encouraged to make the most of available resources rather than receive a regular monetary allowance. However, alternatives such as "school banks" can teach the basics of financial management(Brookings).

Southeast Asia :

‍ In countries like Indonesia and Vietnam, pocket money is uncommon, especially in rural areas. Families prefer children to contribute to the family income through odd jobs or participation in family micro-enterprises. However, schools are introducing financial education programs to fill this gap(Brookings).

Eastern Europe :

In countries like Romania and Bulgaria, pocket money is less widespread. Families prefer to manage resources collectively, and children participate in family financial decisions. School curricula increasingly include financial education modules to prepare young people for independent money management(CIA).

3. Educational alternatives to pocket money

School banks and community programs :

In East Africa and parts of Asia, school banks enable children to deposit small amounts and learn about money management. Community programs such as "Aflatoun" in Africa and Asia teach children financial management through games and practical activities(Brookings).

Small jobs and entrepreneurship:

In countries like India and Bangladesh, teenagers take on odd jobs after school to earn money. These experiences, while modestly remunerated, develop financial management and entrepreneurial skills, helping them to navigate an often difficult economic environment(CIA).

4. Impact of pocket money and alternatives on financial development

Pocket money, whether traditional or replaced by alternatives, plays a crucial role in children's financial development. An OECD study shows that children with access to some form of financial education, whether formal or informal, develop better budget management skills and are more likely to save as adults(CIA). On the other hand, those who do not have access to these resources may have difficulty understanding basic financial concepts.

5. Correlations between pocket money and family income

The amount of pocket money is often correlated with family income. In the United States, children from high-income families receive on average 40% more than those from low-income families(USDA). In Western Europe, the difference is less marked, but still significant. This disparity reflects economic inequalities and differential access to financial education opportunities.

6. Pocket money trends and developments worldwide

With increasing digitization, children's bank cards and financial management applications are on the rise, particularly in Europe and North America. At the same time, community initiatives and school programs are strengthening financial education in regions where pocket money is less common. These trends point to a global movement towards more structured and accessible financial education(Brookings).

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