Pocket money for kids: how much and from what age

Why a child needs pocket money

Money habits don't come from lectures. A child learns to handle money the same way they learn to ride a bike: by trying and getting it wrong. Pocket money gives them a safe training ground where a mistake costs 50 hryvnias, not a salary at 25.

When a child has money of their own, they face choices for the first time: buy now or save for something bigger, take the cheaper option or the better one. The US Consumer Financial Protection Bureau (CFPB), in its Money as You Grow programme, names exactly these as the key skills for school-age children: making choices, comparing prices and saving for things they want.

Ukrainian teenagers want to talk about it too. In a 2023 National Bank of Ukraine survey of more than 5,000 teenagers aged 11-18, 86% said money should be discussed at school, and they named parents and older relatives as their main source of knowledge about money.

At what age to start

There is no fixed line. A good sign is when the child can count to a hundred and understands that money runs out. For most children that is 6-7, the start of school. Before that you can play shop and collect coins in a piggy bank, but a regular amount doesn't make sense yet.

1. 1Ages 3-5Piggy bank, playing shop, save first and buy later
2. 2Ages 6-9A small weekly amount for own small purchases and a goal
3. 3Ages 10-13Pays for snacks and fun, a first card with parental control
4. 4Ages 14-17A monthly amount, own card, first earnings

Younger schoolchildren do better with a weekly amount: a week is a period they understand, and a mistake is quickly corrected. Teenagers can move to a monthly amount: that way they learn to plan further ahead, like adults with a salary.

How much to give: working out the amount

Tables of “how many hryvnias at what age” don't help much: families have different incomes and cities have different prices. It is more reliable to start from responsibilities. First agree on what exactly the child will now pay for, and only then work out the amount.

1. Make a list. School snacks, transport, small treats, presents for friends, games. Things you used to pay for that the child will now pay for.
2. Add it up per week or month. Use real prices, not the ones you wish for.
3. Add 10-20% for saving. Without this part the money is just a travel pass, not a lesson.

The amount doesn't have to be large. What matters more is that it is enough for a real choice: if the money covers only one snack, there is nothing to choose between.

The three jars rule

A simple way to teach a child to split money is three separate piggy banks or three savings “jars” in a banking app:

• Spend: for everyday things like snacks, small items and fun.
• Goal: for something the child wants to buy in a few weeks or months.
• Give: for friends' birthdays, holidays and helping others.

Choose the proportions together with the child, for example 70/20/10. The younger the child, the shorter the goal should be: for a seven-year-old 3-4 weeks is already a long time, while a teenager can comfortably save for several months.

This chart is worth showing to the child: they see straight away that saving twice as much means waiting half as long.

Should pocket money depend on grades and chores

There is no single right answer here, but a few points are worth weighing.

• The base amount comes with no conditions. If pocket money depends on grades or tidying up, it turns into a salary, and ordinary family duties turn into a paid service. A child may decide they don't need money this week, so washing the dishes is optional too.
• Extra money for extra work. Washing the car, helping with repairs, wallpapering at the dacha. This way the child sees the link between work and income without confusing it with family duties.
• Don't cancel pocket money as a punishment. Money that can be taken away at any moment cannot be planned, and planning is the whole point.

Mistakes a child learns from

The hardest part for parents is not stepping in. If the child spends everything on the first day and goes a week without money, that is the most valuable lesson they could get for 400 hryvnias. If you top up, they learn something else: money runs out only in theory.

• Don't top up before the next payday. You can talk about what went wrong, but without lecturing.
• Don't lend “from next week's money” unless there is a real need. If you do lend, agree a clear repayment schedule: it is their first encounter with credit.
• Don't criticise every purchase. A child has the right to “silly” spending from their own money. Otherwise they learn to hide, not to plan.
• Pay on the same day. If the money sometimes comes and sometimes doesn't, the child learns to spend it at once before it disappears.

A first bank card

Many Ukrainian banks offer children's cards linked to a parent's account. The age from which such a card can be issued and the terms depend on the bank. Parents see every transaction, set limits and top up the card from their phone. According to the 2023 NBU survey, 58.1% of teenagers aged 11-18 already had a payment card.

A card is handy for monthly pocket money: the child sees the balance and spending history in the app, and you don't have to worry about cash. For younger children, though, cash is more useful at first: notes you hand to a cashier show more clearly that money runs out.

What Ukrainian law says about children's money

Ukraine's Civil Code distinguishes two age groups:

• Under 14, a child may independently make small everyday transactions (Article 31). Buying an ice cream or a notebook is exactly such a transaction.
• From 14 to 18, a child has the right to manage their own earnings, stipend and other income, and to open a bank account in their own name and manage it (Article 32). Other transactions require parental consent.

So from 14, money a teenager has earned is legally theirs. It is a good moment to move from pocket money to joint planning: which expenses the teenager takes on and how they manage their own income.

In-game and in-app purchases

Game currency, skins and loot boxes with random items are the most common way children quietly spend their parents' money. A few simple steps:

• Turn on parental purchase approval and family sharing in your app store settings.
• Don't link your main card to the child's account. A separate card with a limit or gift top-ups are better.
• Agree that in-game purchases come out of pocket money. When a skin costs a week of snacks, the child starts counting on their own.
• Explain how loot boxes work: the chance of getting a rare item is deliberately small, and most purchases don't deliver what the child wanted.

When parents save for the child

Pocket money teaches the child, while the parents' savings give them a start in adult life. The same compound interest applies: the earlier you start, the more work interest does.

When the child is older, show them this account and how it grew. It explains compound interest better than any lesson.

In short

• Start at 6-7, when the child can count and understands that money runs out.
• Work out the amount from what the child pays for themselves and add 10-20% for saving.
• Weekly for younger children, monthly for teenagers. Always on the same day.
• A base amount with no conditions, extra money for extra work. Don't top up and don't cancel it as a punishment.
• Three jars: spend, goal, give. Shorter goals for younger children, longer ones for teenagers.
• From 14, a teenager in Ukraine manages their own earnings and can open an account in their own name.

Sources

1. National Bank of Ukraine - survey of teenagers aged 11-18 for Global Money Week 2023 (in Ukrainian)
2. Civil Code of Ukraine - Articles 31 and 32 on the legal capacity of children under 14 and from 14 to 18 (in Ukrainian)
3. Consumer Financial Protection Bureau (US) - Money as You Grow: school-age children and preteens

This article is for information only and is not financial or investment advice. Check current terms with your bank or financial institution before making decisions.