In The Balance

How much pocket money, if any, should you give your children? What does it teach them about the world of finance? Some parents give their children an unconditional allowance, with no strings attached, but could this be considered a form of child abuse? Does it make them financially irresponsible adults with a sense of entitlement? And if you only give your children money in return for them washing the dishes or cleaning their room, do they ever understand the real meaning or usefulness of the work they are doing? We assess the value of pocket money as a tool for introducing young minds to the world of money, and ask whether parents should be more open with children on money matters and even give them more power to make their own choices with the help of new technology. Contributors Professor Lewis Mandell, a financial economist specialising in financial literacy Dean Brauer, c-founder of goHenry, a digital pocket money app Professor Agnes Nairn, a researcher on consumerism and marketing to c