As the way in which we see and spend money changes, it makes sense that the way we give our children an allowance changes along with it.
Whether you call it an allowance or pocket money, the cash you give to your children is often seen as a tangible thing. Notes and coins that you can physically hand over to your children. In fact, the Annual Halifax Pocket Money Survey in the UK revealed that 84% of parents still give their children cash for their allowance.
When you consider the way in which most of us pay for things in the present day, that does seem a little odd. Chances are most of you reading this right now have very little cash on your person, if any at all. That's because we now use debit or credit cards or even our phones. UK Finance predicts that by 2028, we will only use physical money to pay for things one in every ten times.
So what does that mean for our child's allowance? If physical money is slowly becoming a thing of the past, surely using it to teach them about finances is a little backward. In the UK, children as young as seven can open a savings account, and at eleven they can open a current account. Those options will allow them to pay for things with their cards, and also allows parents to give them their allowance via standing order.
There are even pocket money apps such as RoosterMoney. The app allows children to save their money and watch their funds grow, similar to how they would if they were keeping it in a jar or piggy bank. They can also use the app to set themselves goals for certain things they want to buy. According to BBC, the top item kids are saving their allowances for on RoosterMoney is Lego.
What about how much you should be giving your children? Well, that ultimately depends on the parent and what they can afford. In the UK, the average amount depends on where you are in the country and there's also a gap between girls and boys. The average tends to be around $9 per week. That sounds about fair to us but again, it depends on the family and the household.