pocketmoney

Pocketmoney is a small regular amount of money given to a child by a parent or guardian. It is a form of financial education and typically accompanies expectations about saving, spending, and sometimes completing chores or meeting responsibilities. The term is common in British and other Commonwealth varieties of English; in American English the term allowance is more widely used.

Amount and frequency vary with age, family income, and local norms. Many families give pocketmoney weekly or monthly, with younger children receiving smaller sums and older ones larger. Some schemes tie the money to a system of chores or behavior, while others offer unconditional allowances to promote autonomy.

Purpose: the practice is intended to teach basic money management, budgeting, and decision making. Children may learn to distinguish needs from wants, set savings goals, and track expenditures. Parents may use it as a tool to discuss money values and financial planning.

Alternatives: some households supplement or replace cash with digital allowances through apps, debit cards for kids, or saving accounts. In some regions, pocketmoney is also used to describe petty cash kept by a small business or organization, but this usage is less common in everyday parenting contexts.

Impact: research on early financial education suggests that regular pocketmoney, when paired with guidance, can improve financial literacy and long-term saving habits, though outcomes depend on how money is discussed and supervised.