Spending money for a 5 year old??

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  • nappy501
    nappy501 Posts: 103 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Both of my children have had pocket money from birth.
    0 - 1 10p Community tax 5p Savings 5 p
    1 20 p "" 10 p "" 10 p
    2 30p " " 15p "" 15p
    3 40 p "" 15p "" 15 p In hand 10 p
    4 60 p "" 20 p "" 20 p In hand 20 p
    5 90 p "" 30 p "" 30 p In hand 30 p
    6 £1.30 "" 45 p "" 45 p In hand 40 p
    7 £ 1.90 "" 65 p "" 65 p In hand 60p
    8 £2.80 "" 95p "" 95 p In hand 90 p
    9 £4.10 "" £1.40 "" £1.40 In hand £1.30
    10 £6.00 "" £2.00 "" £2.00 In hand £2.00
    11 £8.80 "" £3.10 "" £3.10 In hand £2.60

    12 £12.90
    13 £18.90
    14 £27.70
    15 £40.60
    16 £59.50
    I'll just explain Community tax is money that is spend for family activities like going to the cinema not to cover the tickets, but maybe popcorn and drinks. Savings is long term savings, not to be taken out. Pocket money in hand is what they are actually given. Community Tax and Savings are paid into building society accounts. Community Tax very rarely get dipped into. Due to my low income there have been times when it has not been paid in.

    In the beginning they had no understanding of money, but at around 3 they started asking for things and they started getting 10 p every Monday. They can spend their money virtually on anything although sweets are frowned upon.

    They have always had the community tax and savings explained to them. They have at various times suggested the money be used for extras when on holiday. However, they have been fortunate in that family and friends have always given then going away money.

    My eldest is now 11 years old when she got to 9 I was having trouble finding the £1.30 in my purse. So we opened up a Nationwide account, just because there is one locally. A standing order pays the money directly to her account. Initially, she had a passbook, but at 11 after some discussion decided to go for a cashcard, which she now has.

    I don't remember how I worked out the formula for the pocket money, but the principle of Community tax, savings and money in hand came from an Oprah programme some years ago.

    Hopefully, when they are grown they will understand about budgeting their money and saving.

    The £59.90 at 16 looks frightening, but it may be better than paying for designing clothes and special food and mobile phones.

    I hope I am creating financially independent people, but you can never tell.
  • moggitymog
    moggitymog Posts: 532 Forumite
    Gave my daughter pocket money this week for the first time (she is nearly 6), she had to earn this by dusting the house in return she got £1.50 which will be changed into dollars for when we go to disney next year, then she can treat herself on holiday.
  • Chell
    Chell Posts: 1,683 Forumite
    First Anniversary Combo Breaker
    My children are three and nearly five. They both get the odd pound pocket money but not at set times, it is normally my parents who give them it.

    DS used to always ask for a Hot Wheels car, they are only £1 but there is a limit to how many a child needs! He now puts his money in the wallet that I keep for him. He understands that he can buy a little car or save up and then buy something better with the money. I think it is good as makes him think about what he'd like rather than expecting me to buy things (although he has always accepted the word, 'no').

    If he asks for something I tell him he can have it if he uses his own money, it soon puts him off!
    Nevermind the dog, beware of the kids!
  • fizzel81
    fizzel81 Posts: 1,623 Forumite
    I have just started giving my nearly 5 year old pocket money and he is learning to understand that if he wants something he has to buy it or save to buy it

    he gets £2 on a friday
    DFW nerd club number 039 :p 'Proud To Be Dealing With My Debts' :money: i will be debt free aug 2010

    2008 live on 4k +cb £6,247.98/£6282.80 :T
    sealed pot 2670g
    2009 target £4k + cb £643.89:eek: /£6412.80
  • in2deep_2
    in2deep_2 Posts: 343 Forumite
    First Post First Anniversary Combo Breaker
    Like many others have said give them pocket money...but my goodness make them work for it and understand its value so they never end up posting on here like me.
    'Beware of little expenses. A small leak will sink a great ship'. -Benjamin Franklin.
  • moggylover
    moggylover Posts: 13,324 Forumite
    Mine got pocket money when little - but they had to earn stars all week for good behaviour and then those were totalled up - and were worth about 10p each - which gave them their total for the week. This went up to 20p/star as they got bigger.

    However, now eldest is at secondary school (13), he gets an "allowance" of £15.00/week, from which he has to buy school lunches and drinks and bits and pieces needed for school - and what is left is his pocket money. Most weeks he manages to save around £3 to £4 - so I must have done something right. From that he pays about £2.00 to go to snooker on a Saturday evening.

    He then earns a further £2.50 about every 5 days by cutting all my grass for me (there is quite a lot) but has to supply his own petrol for strimmer and mower.

    Youngest (10) still gets about £2.00 a week - and shows no interest in earning any more - however he is the only child I know who can take £10.00 into a toy shop and come out with £10.20 cos he has picked up some change from the floor and "wants to think about it before he spends". Hey Martin, have you ever been a milkman in this part of West Wales? lol!

    They both have to save half of pocket money/birthday money/christmas money, both buy willingly for parents, grandparents and cousins (although not quite so willing for each other) for birthdays/christmas, and they have to take their own money for spending on school trips, etc. They also help (mostly willingly!) with anything that I need help with around the house, although they will grin and ask what it is worth - but the threat of a clipped ear if they don't help always sorts that!

    I think it is very important that they learn from very little, that once money is spent it is gone - and they learnt this quickly. Eldest still tends to spend first and think later - but is getting better since he had one week when he only had £1.00 left for lunch on Friday and had to take out of his money box - instead of putting in! It seemed to hurt!
    "there are some persons in this World who, unable to give better proof of being wise, take a strange delight in showing what they think they have sagaciously read in mankind by uncharitable suspicions of them"
    (Herman Melville)
  • My boys (4 & 6) have both had £1 per week paid into their accounts since birth as well as birthday/christmas money. At christmas we started giving them £1 per week in their hands (20p a school day provided they behave at school - eldest was going through a bad phase and figured this might help him out of it). The money in their hands goes into a money box and they count it up regularly. They know they can use this to either buy things or save up for things - we have a wii and they have both bought a game each for it from their money. They also get £1 each (same conditions) from my parents.

    My 4 week old is getting £1 in her piggy bank until enough to put into her savings account and will have the same happen no doubt when she goes to school.
  • I never got "pocket money" as such. At primary school we had to bring in £1 a week to pay into a bank savings account set up via the school, but this money wasn't for spending.

    mum bought us 1 magazine/comic each a week, and if we went to the shop after school we were allowed a packet of sweets or bar of choccie each.

    we had to keep our rooms etc tidy but got no money for this, if we wanted extra money we had to do proper jobs like washing the cars, working on the farm, digging potatoes, feeding calves etc. Got £2-3 per day for this (age 7ish onwards)

    By the time I was 14 I was sick of digging spuds so I got a job in a shoe shop and earned about £30 a month - I thought I was rich :D
    Wiggly:heartpulsFB

  • flea72
    flea72 Posts: 5,392 Forumite
    First Post Combo Breaker First Anniversary
    moggylover wrote: »
    However, now eldest is at secondary school (13), he gets an "allowance" of £15.00/week, from which he has to buy school lunches. Most weeks he manages to save around £3 to £4

    we did the same with our eldest, until we realised they werent actually buying any food at lunchtime, so they could save the money, and then just raiding the cupboards when they got home, as they were so hungry. also managed to sneak a few snacks out the house, to eat over the day, but didnt want to highlight this, by making a full pack-up

    i ended up paying twice, once for the supposed school dinner, and then again, for all the food they stuffed later - i wondered why my crisp quota never seemed to last the month!

    were now back to £5 a month for free spending, and they take a packed lunch - its working out much cheaper for me

    Flea
  • full-time-mum
    full-time-mum Posts: 1,962 Forumite
    Pocket money for a 5 year old is crazy they can barely count. Let them be children for a bit longer!

    That doesn't mean that you can't teach them about money. At 5, they can begin to understand that Daddy/Mummy goes to work and gets given some pennies which are then used to buy food, electricity (for the TV) etc. By 6, my children understand that certain things cost more and I will only buy them if they are on offer for a treat.

    We are currently working on the fact that credit cards aren't free money!

    You can give a 5 year old choices such as either chocolate or a magazine (at this stage the fact that chocolate is only 50p and the comic 1-50 is probably irrelavant) but you can also say,
    "well you can have 3 freddo frogs or one kit-kat for the same amount of money."

    My youngest is 6, my eldest 12. We started pocket money at 10 at 50p plus extra if she did certain things like exercises, homework music practise up to £1.00 She now gets £2.00 and we try to leave her to her own devices but if she is really lax with homework etc we reserve the right to dock it.

    Grandparents have always given them holiday money which we have tried to help them spend wisely.
    7 Angel Bears for LovingHands Autumn Challenge. 10 KYSTGYSES. 3 and 3/4 (ran out of wool) small blanket/large square, 2 premie blankets, 2 Angel Claire Bodywarmers
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