Kids and pocket money: how much should you hand over?

Working out how much cash to give kids when doing chores can be tricky — but experts have said there are ways to do it so they learn how to save up for their dream item.

Gardening and washing the car are some of the most lucrative jobs kids are rolling up their sleeves for in exchange for some quick cash.

And many have their eye on the prize of some big-ticket items, including Lego sets, phones, tablets and watches.

Pocket-money tracking app RoosterMoney’s latest Pocket Money Index quizzed 5000 Australian children aged four to 14 who use the app.

It found many kids choose to save about 30 per cent of their hard-earned cash to put towards big-ticket items.

The research found the top five chores for pulling in decent cash were gardening ($5.72), washing the car ($4.77), looking after pets ($4.56), washing windows ($3.65) and mopping the floor ($3.54.)

RoosterMoney chief executive officer Will Carmichael said engaging kids early about money and teaching them how to earn it gave them a “headstart”.

“It’s a massive opportunity to start cementing those habits,” he said.

“Kids have amazing focus when they really want to get something and it’s empowering, too.”

A majority of parents (74 per cent) opt to give children a regular allowance and Saturday is the most common day kids rake in cash.

A little boy saving money by putting coins in a piggy bank. Picture: iStock.

Money Savvy Kids founder Dianne Charman said paying kids for necessary everyday tasks such as brushing their teeth and making the bed did not prove as effective as giving them temporary chores.

“To keep their interest in their jobs give them a short time frame,” she said.

“For example, if they are mopping the floor, is it something they can just do for the school holidays and not until they move out of home?”

CHILDREN ARE BECOMING SAVVY WITH THEIR CASH

Ms Charman said parents beginning to teach children about money should start with a regular amount of pocket money each week, then link it to chores down the track.

As for determining how much to hand over, Ms Charman said parents “should be very conservative”.

“I’ve had some stories where parents have paid an hourly rate equivalent to a

16-year-old to a 10 or 13-year old,” she said.

“This isn’t going to work.”

Ms Charman suggested allocating a financial value for each job given.

@sophieelsworth

Originally published as Kids and pocket money: how much should you hand over?