When to start giving pocket money is ultimately up to you as a parent. However, it is helpful to have a guideline. On average, children in the Netherlands start receiving pocket money at age 6. Around this age, they start learning basic math and begin to understand the value of different coins.

👋 A Helping Hand

By giving pocket money from an early age, your child learns the value of money and how to manage it. However, it is important to follow some basic ‘rules’ as a parent:

• Always give pocket money on the same date and time.
• Set a period for how long the money should last. Be consistent and avoid giving extra money in between—once it is gone, it is gone.
• Teach your child to save. By putting money in a piggy bank, they can visually see their money grow, which encourages them to continue saving.
• Allow your child to earn extra money by doing chores, such as setting the table. This teaches them that money is not just handed to you—you have to work for it.

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💰 How Much Pocket Money Should You Give at Each Age?

How much should you give, and when should you increase the amount? Below is an overview based on research by Nibud, a Dutch independent knowledge centre on household finance.

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Pocket Money in Secondary School 📚

As children grow older, they—hopefully—become better at managing money. They understand the value of money, realize they need to earn it, and ideally, learn not to spend it on useless things. At the same time, their desire to spend money on fun activities increases.

From around the age of 12, when children enter secondary school, many parents decide to increase their child’s pocket money but switch from a weekly to a monthly allowance.

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As you can see, the monthly allowance increases only slightly and eventually decreases. This is because many teenagers start working part-time. To encourage them to work, it is better not to give too much pocket money. This way, you support them financially but they also develop a sense of responsibility. Additionally, many parents also provide clothing allowances.

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Pocket Money: Cash or Digital? 💳

Now that you have a guideline for how much pocket money to give, it is also important to consider how to give it. In today’s digital world, children must learn to manage ‘online money’ and understand the risks that come with it.

For younger children, it is generally better to give cash pocket money. They enjoy holding the money and filling up their piggy bank. Around the age of 10, children start understanding digital money. This is a good time to open a bank account and deposit their pocket money there. Teach them how to check their balance and use their card and PIN safely. Go with them the first few times they make purchases and explain the benefits and risks of contactless payments.

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Worried that your child might go into debt? Don’t worry! It is impossible for children under 18. However, to ensure they develop good money management skills, you can keep an eye on their spending through the bank app.

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Financial Awareness 📒

When opening a bank account for your child, it is crucial to help them understand that money is not just a number on a screen. Grassfeld’s free app can assist by providing insights into where their money goes.

With just a few minutes to set up an account together, transactions are automatically categorized so they can see exactly what they are spending their money on. Your child can also learn to set savings goals and create budgets through the app.

Download the free app now from the App Store or Play Store!