Pocket Money- yay or nay? It’s a no for me!
Why We Don’t Do an Allowance (Right Now)
When it comes to parenting, there are a million little decisions to make, and when money’s involved, it feels like there’s even more pressure to get it “right”.
One of the most common questions I get from clients with kids is:
Should I give my child pocket money?
And while there’s no one-size-fits-all answer, here’s my honest take.
Right now, my kids are 9 and 11, and we don’t do regular pocket money or a weekly allowance. That might change one day, and if it does, that’s okay too. One of the biggest things I try to model in finance and in parenting is this: it’s okay to change your mind when you know more.
I never got pocket money growing up. I worked from a young age and learnt about money through doing, and through not always getting it right. So now as a parent (and a money coach), I think a lot about what I want my kids to learn about money. And for us, right now, pocket money isn’t the best way to do that.
Why we don’t do a weekly allowance
I don’t want my kids to think they need to be paid to contribute to a household. Helping with the dishwasher, tidying their rooms, feeding the dog — these aren’t “jobs” that deserve payment. They’re part of being a family. You pitch in because you live here.
It’s a principle I hold strongly, and thankfully, my ex and I are on the same page. If our kids go above and beyond, like helping with recycling, washing the car, or something outside of their normal responsibilities, then we might give them money as a reward. But we separate that from the basic expectation of contributing to daily life.
But I get the other side too
Look, I see the benefits of pocket money as well. And if we ever did change our approach, it might actually be better for our own budgeting. Right now, we often say yes to things here and there — a book from the school fair, snacks at sport — and those costs add up.
A set allowance could teach boundaries and hand the responsibility over to them. “You’ve got ten dollars this week. Your choice what to spend it on.” That’s valuable learning.
So, should you give your kids pocket money?
Here’s the thing. There’s no “right” way to do this. What works for one family won’t work for another, and that’s totally okay. The goal is to teach kids the value of money, how to manage it, and to build lifelong habits that serve them.
And here’s something I say to clients all the time: put your own oxygen mask on first. There are so many ways to help your kids learn about money that don’t have to blow up your budget. You don’t need to hand over cash every week to teach valuable lessons. Conversations, boundaries, and small moments of money responsibility can go a long way without adding pressure to your own cash flow.
Let’s break it down
Benefits of giving an allowance:
• Teaches budgeting and decision-making
• Encourages saving for goals
• Builds a connection between work and money
• Helps kids experience natural consequences (spend it all, and there’s nothing left)
• Makes money visible and tangible from a young age
Reasons some families choose not to:
• Doesn’t reflect real-world responsibilities (you don’t get paid for chores as an adult)
• Can create entitlement if not linked to effort or contribution
• Adds extra pressure to a family budget
• Might miss opportunities for organic conversations about spending
Alternatives if a weekly allowance isn’t right for you:
• Set spending limits and involve kids in decision-making (for example, “You’ve got twenty dollars to spend at the fair. What’s your plan?”)
• Create earning opportunities for non-household jobs
• Use gift cards or prepaid debit cards to simulate money management
• Start small savings challenges
• Talk about why you make certain financial decisions as a family
More resources to help
If you’re keen to learn more about teaching kids about money, here are some great (and free) tools:
• Rask Education – Money and Investing for Kids
• The Australian Finance Podcast has great episodes on raising financially savvy kids
• Download my Financial Health Checklist to see how you’re tracking as a family
• Or book a free 15-minute call with me to chat through what might work for your values and budget
My final thoughts: Your family, your values, your decision.
Whether you go with weekly pocket money, an earn-as-you-go model, or no payments at all, what matters most is being intentional. Talk to your kids, involve them in money moments, and remember you can always change your approach as they grow.
No one gets this perfect. But small steps and open conversations? That’s how we raise money-smart kids.
Gemma x
Preorder The Money Reset here: The Money Reset: Take Control of Your Money and Your Life : Mitchell, Gemma: Amazon.com.au: Books