When Should I Start Giving My Kids Pocket Money? 

Teaching kids about money doesn’t have to wait until high school. In fact, many Aussie parents are choosing to introduce pocket money early on, using it as a way to build good habits, teach responsibility, and set their little ones up for a financially savvy future.

But the big question remains: When Should I Start Giving My Kids Pocket Money? 

There’s No ‘Perfect Age’ – But Look for Readiness

Rather than a set age, it’s more about signs of readiness. If your child is starting to understand basic numbers, asks about money, or shows an interest in buying things with their own cash, they might be ready to take on a small allowance.

For many families, this happens somewhere between the ages of 5 and 7, when kids begin grasping the value of coins and notes (or tapping a card – let’s be real). At this age, they’re often excited by the idea of saving up for something they want, which is the perfect launchpad for learning.

How Much Should You Give?

There’s no rulebook here, but a common approach is $1 for every year of age, per week. So a six-year-old might get $6 a week. Of course, that depends on your budget and what works for your family – it’s totally fine to start smaller or give money occasionally, tied to chores or good behaviour.

Pocket Money With a Purpose

It’s not just about handing over coins – the real magic happens when kids start managing their own little budget. Pocket money can help them learn to:

• Save for something special

• Understand the difference between wants and needs

• Make choices (and sometimes mistakes) with their money

• Appreciate the value of hard work, if linked to chores

Some parents choose to split money into three jars – spend, save, and share – which helps introduce broader financial lessons around giving and goal-setting.

Keep It Fun and Flexible

At the end of the day, pocket money is a tool, not a rule. There’s no pressure to get it right from day one. You might experiment with different systems or pause pocket money when life gets busy – and that’s okay!

The goal is to raise kids who are confident with money, curious about how it works, and capable of making good choices as they grow.

So if your little one’s eyeing off a toy at Kmart or asking how much your coffee costs, it might just be the perfect time to kick off their pocket money journey.