Children watch and learn all the time so start as soon as you can by modelling money skills. Let children handle money and use the language of money when talking to them about shopping, or even a trip to the cash machine. In these days of credit cards and internet banking using money can often be "invisible" to children. They never see money going out from the family but always in via ATMs and cash-back - an amazing concept as they could easily think that you go shopping and get money back!

Using pocket money as a starting point you can develop important life skills. Children need to know that money comes into the household either through working or from the government (often both) and that it is not a limitless supply. If their pocket money has limits, then they can begin to learn to budget, save and think about how they want to spend the money.

They will also begin to learn that there are some jobs they are expected to do in the family for free, although there may well be others that offer financial reward. Different families have different ideas about pocket money and also can afford different amounts. It is worth considering this issue carefully and working out how much you can afford. It can be a really good teaching tool, if care is given to talk about money, and money is discussed on a regular basis.

It is up to the individual family to decide if this is for them - here are some thoughts and ideas about the whole issue.

How much?
What for?
When do you start giving pocket money?
Extra tips for parents
10 tips for money education
Teaching money skills

Pocket Money ideas for these age groups...