Should grandparents give pocket money?
Printer-friendlySend to friendPDFYes, grandparents should give pocket money
In some cases, when parents are struggling with their finances, it’s helpful if grandparents can give pocket money. It means that the grandchildren don’t miss out, and it also removes one burden from their own children’s shoulders.
Giving your grandchild pocket money can teach them valuable lessons about managing money: from learning how to save and budget to realising that treats and luxuries come at a price – the type of money management skills that many adults still fail to grasp.
If given with help and advice on how to spend and save, pocket money can become more valuable than the numbers on the coins.
Expect your grandchildren to quickly spend their first few 'wage packets' on anything and everything. But once the novelty has worn off, you can encourage them to start saving a little bit and to begin thinking about what they really want to spend their money on. You could even take them to a high street building society and help them set up their very own savings account – here are the best accounts for children.
Also, by getting your grandchildren to pay for certain things out of their own money (for instance, magazines, sweets), they will soon develop an awareness of what they’re spending their money on and how quickly it can go!
No, grandparents shouldn’t give pocket money
The main problem with giving pocket money to your grandchildren is that it can foster even more materialism in them than they already encounter in today’s society. Your grandchildren should be happy to see you for you, not for what you can give them.
The occasional present of money – for birthdays and Christmas, for example – makes sense, but to give it to them every week or month can set an unfortunate precedent. It can also be expensive, particularly if your pension isn’t the greatest.
Similarly, although paying children for doing chores and being good can provide them with incentives and teach them the value of working for their pay, it can also implant in them the idea that the only point of doing anything is for a monetary reward.
How to give if you are giving
It’s up to you when you start giving pocket money to your grandchildren (if at all). However, generally it’s not worth giving them money before the age of about 6, when they'll start to understand what coins are and what money is used for.
If you do give them money, help them by giving them rules about what the money should be spent on. Tell them that some can be used for immediate spending on sweets and so on and some can be used for saving up for something big they really want. For this long-term saving, you could help them set up a savings account.
Should they work for their pocket money?
The reasoning behind giving children money generally falls into two camps: the money they have to work for and the money they don’t. Both have their benefits and downsides, and it’s important that you go with what feels right for you.
Making them work for it
Many parents believe that, in making children earn their own money, they start to develop a sense of its worth and will have a more sensible approach towards money later on in life. Parents who think this way make their children earn their pocket money in a variety of different ways – for instance, doing household chores and helping with the family pet and, most commonly, as a reward for good behaviour.
If you share this view, start planning little chores that your grandchild could complete. Do the windows need cleaning? Does the car needs washing? You could set specific values on different jobs, depending on how much you want them done and how difficult they are to do.
Not making them work for it
For many people, the giving of pocket money to children in exchange for good behaviour and the completion of chores instills in them the wrong attitude. Why should they be paid for helping around the house when other family members do it for free? And shouldn't good manners come naturally and be a result of the child’s moral education rather than something they just do for money?
If this is how you feel, think about keeping pocket money and your grandchild's behaviour completely separate. If you know that they already help around the house and are generally well behaved (we all slip up sometimes!), explain that you're giving them pocket money because you want them to have the freedom to buy what they want, not because they need to do better. However, if their good behaviour starts to slip, you could consider docking their money or stopping it completely and explaining why.
How much to give
Determining how much to give can be quite a daunting task, one that causes many parents (and grandparents) a lot of anxiety. Research from The Children's Mutual (which has a very helpful pocket money site: Pocketmoneypetz – see below) has shown that nearly 20% of parents feel under pressure to keep up with what other parents are paying, and many are unsure just how much they should be giving.
To avoid falling into this trap, work out an amount based on what you can realistically afford and which suits the individual needs of your grandchildren. Research suggests that, on average, parents give their children around £6 a week, but that doesn’t mean you have to. It depends on your income, how old your grandchildren are and what their own parents are giving them. Don’t be bullied!
Ever find yourself gasping in horror at how much pocket money children are getting now? Here's one way to check if the amount you got when you were young is really so much different to what children get now.
The National Archive's currency converter allows you to discover how much an amount of 'old' money would buy at today's prices. For example, five shillings in 1960 would be worth £3.83 today!
Some useful websites
PocketMoneyPetz
www.pocketmoneypetz.co.uk
A fun microsite that will help you teach your grandchildren how to manage their pocket money.
Moneymagpie.com
Money-saving tips on everything from fun days out to health and beauty.
A useful video
Jasmine Birtle has published a great book on investing: Beat the Banks (Vermilion, £7.99). If you order it here, you'll receive an exclusive package: a full 30% DISCOUNT on the cover price (saving £2.40); two FREE e-books; and a FREE e-guide.
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Comments
pocket money
Posted by AmandaT on 07 Mar 2010
BeGrand.net staff member
I'm not sure why grand-parents should give their grand-children poicket money at all. Presents for special occasions are OK, and especially when they are very small (and dont need much)or in early teens (and need everything), money is the best present but why should it be handed out on a regular basis? Surely that is a parent's responsibility and our add-ons are special treats?
Pocket Money
Posted by SueT on 25 Feb 2010
BeGrand.net staff member
I give my grandchildren pcoket money but not on a regular basis such as weekly. Rather like a couple of times a month. With my 16 year old granddaughter I tend to send a larger sum of money than for the two younger grandsons. This might not sound 'fair' but she has needs the other two don't (16 year old girls tend to have a lot of 'needs'!) and the boys will get more as they get older, they are only 8 and 5. I decided not to send on a weekly basis so it can be a variable amount of money at variable times. A bit more when they have something special to do or buy. I hope this is helping Mum and Dad out too!