As your children start to grow up, there will come a time where they want a little more financial independence, and you want to introduce pocket money for them to practice spending and saving their own money. If you’re on the hunt for some guidance on getting started, look no further! We’ve compiled some top pocket money tips on when you should start introducing pocket money to your children, as well as how you can help them set positive money habits from an early age.
What age should you start paying pocket money?
While the age you start paying your child pocket money depends on what you feel comfortable with, there is evidence to suggest that introducing children to money management at an early age is beneficial for their future financial habits! In fact, research by the University of Cambridge has found that children’s attitudes to money can be formed by as early as age 7.
At nimbl, any children aged 6 or above are eligible for their very own nimbl card – meaning you have the option to introduce your child to digital pocket money early on (whilst maintaining enough control to give you peace of mind)!
Ultimately, children learn best by doing, so giving them the chance to learn about spending and saving with small amounts of money on their own cards is a great way to help them on their way to becoming financially responsible.
One of the most important pocket money basics to introduce your child to right from the get-go is setting budgets. Teaching them to make sure they avoid spending more than they need to (or should) is a valuable life-skill that they can put to use as they grow up and become more independent.
To put this into practice, you could put them in charge of a small part of your weekly shop – possibly even giving them a set budget as a top-up on their nimbl card, and asking them to buy a certain number of items within their budget.
And for those occasions where your child wants to hit the shops with their friends, you can make use of nimbl’s nifty features to help them stick to their budget for the day by setting a spending limit. It’s really easy to set up or adjust daily, weekly or monthly spending limits for your child – if you’re on the hunt for handy hints on how to use nimbl’s spending controls, our recent blog outlines a step-by-step guide!
Starting with savings
Alongside responsible spending, it’s really important to teach your children the value of saving from an early age, and starting with pocket money is the perfect way to learn!
When you start to give your child their weekly or monthly pocket money, you might want to encourage them to regularly put half of their income into their savings pot – as it starts to build up, they’ll soon see the benefits of saving and could even put their savings towards a larger purchase.
Through nimbl’s handy microsavings feature, you can also teach your children to save a little every time they spend with their nimbl card – even if they save just 5p with each tap of their card, they’ll soon see how quickly it adds up in their savings pot! For more tips on teaching your kids to save, check out our dedicated savings blog jam-packed with handy hints.
Introducing pocket money doesn’t have to be scary – in fact, it’s a great way for children to learn about the vital life skill of money management. Thanks to nimbl’s helpful spending controls and nifty savings features, you can be reassured by the knowledge that your kids will be kept safe and secure as they get started on their financial journey, no matter what age they are!