Education and Child Matters

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Child Pocket Money & Savings

 

This webpage will give you a general overview about pocket money for children. It is intended as a guide for parents if they can afford to give pocket money and if it is in the best interest for the family. Pocket money is not a given right for any child and should not be given if it has any form of detrimental effect on the child and the family.

WHAT IS CHILD POCKET MONEY?

Pocket money is money given to a child by their parents for chores and help around the house, when they go above and beyond, and for outstanding behaviour or school performance. 

A child can save this money for the future or spend it on things for themselves (personal expenses). 

WHAT CAN YOUR CHILD LEARN THROUGH GETTING POCKET MONEY?

A child will learn the following:

  1. The value of money.
  2. How to save money and plan for the future.
  3. Work ethic.
  4. How to handle money.
  5. How to look after and manage money.
  6. To strive for the things they want.
  7. To go above and beyond.

HOW CAN A CHILD SAVE THEIR POCKET MONEY?

A child can save their pocket money using the following methods:

  1. A saving jar or piggy bank at home.
  2. With their parents.
  3. An instant access savings account with a bank. Your child can deposit and withdraw money at any time. You can set this account up on behalf of your child and manage it until your child is 7 years of age. After 7 years of age your child can manage their account themselves. 
  4. A regular savings account with a bank. Your child can save a regular set amount every month for a set period of time. You can set this account up on behalf of your child and manage it until your child is 7 years of age. Once they are 7 years of age they can manage the account themselves. 
  5. Junior cash ISA. This is a tax free saving which your child can withdraw after 18 years of age. At 18 years of age the junior cash ISA will convert to an adult cash ISA.
  6. Stock and shares ISA. This is a tax free saving which your child can withdraw after 18 years of age.
  7. NS&I premium bonds. This is a gift a parent can purchase for their child. 
  8. Children’s pension. You can pay into a pension on your child’s name which will be transferred to them when they turn 18 years of age. Then they will start to contribute to it themselves directly. Government top ups are also available.

LINK TO WEBSITE FOR WHICH – HOW TO SAVE FOR YOUR CHILD’S FUTURE.