Best 5 Pocket Money Tips: How Much Should Kids Save?

Get practical pocket money tips for parents: find out how much your kids should save every week, how to build healthy money habits, and raise smart young savers.

Table of Contents

Introduction

Hi, I’m a mum of four, so our home is full of noise, laughter, and endless requests for snacks. Somewhere between packed lunches and bedtime stories, I also became the unofficial family accountant. When I first started giving out pocket money, I thought I was keeping things fair. What I didn’t realise was that I was teaching my kids how to handle money, and I didn’t want to get that lesson wrong.

That’s what motivated me to start searching for the best pocket money tips. I wanted my children to learn the value of saving, spending wisely, and being proud of what they earn. If you have ever thought about how much should kids save each week? or how can you make it part of daily family life, then you are at the perfect destination.

Why Pocket Money Matters More Than You Think

Pocket money is more than coins in a jar; it’s the first step in teaching financial independence. According to GoHenry, pocket money helps children understand earning, budgeting, and saving responsibly. (GoHenry.com)

A study by Starling Bank found that UK kids between 6 and 12 already save an average of £148 each year. That’s proof that with the right pocket money tips, small savings really do add up.

In my household, pocket money became something more than just allowance. It became a weekly ritual of teaching patience, responsibility, and pride. But first, I had to answer the question that every parent asks: How much should kids save?

How Much Should Kids Save Each Week?

There is no single magic number. Every family is different, and every child has their own goals. Looking at the averages helped me set realistic expectations.

UK pocket money averages:

GoHenry: Approximately £7.54 per week per child
Rooster Money: Approximately £3.85 for families with regular routines
Nimbl: £2-£5 for ages 8-10, £10-£20 for teens (Nimbl.com)

Once we had those numbers, I came up with our own family rule: each child should be saving a minimum of 25% of their weekly allowance.

So, if my 10-year-old gets £4 a week, £1 of that goes straight into savings. By summer, she’s saved enough for her own Lego set; the sense of accomplishment is just priceless.

The best pocket money tips always start with consistency. The amount is less important than the habit of saving every week.

Weekly savings chart for children with colourful stickers and progress boxes showing how much pocket money is saved each week.

Our Family’s Pocket Money Plan

If you’re new to setting up an allowance system, here’s what worked for us. These steps can help make saving a natural part of family life.

Determine an allowance amount
We looked at what other parents were doing through MoneyHelper.org.uk and then balanced it with our own budget. For our four kids, we set:
- £4 for our 8-year-old
- £6 for our 11-year-old
- £10 for our 14-year-old (plus extra for chores)
Set a saving target
We use the 25% rule. It’s easy to calculate and still leaves room for spending.
Make savings visible
The younger ones use clear jars. Our teenagers use a GoHenry or Rooster Money app to track savings and spending.
Set personal goals
Each child chooses what they’re saving for: a toy, a day out, or a charity donation. Having a goal keeps motivation high.
Review weekly
We count, talk about progress and celebrate every Friday. These mini “money meetings” have now become one of our family’s favourite rituals.

Pocket Money Tips: Family counting coins together at a kitchen table, teaching children about money, saving, and budgeting.

Factors That Affect Pocket Money Savings

The right amount of savings is based on your family setup. Here are the biggest influences:

Age: Younger children would save pennies while older ones can handle pounds.
Expenses: If you cover everything, they can save more.
Chores: If pocket money is earned, link extra chores to extra rewards.
Family Budget: Your budget should always be first.
Goals: Saving for a long-term reward builds patience and pride.

Expert Tips on Pocket Money

One thing all financial education experts seemed to agree on was to start early.

According to NatWest MoneySense, money lessons should be introduced the moment children can count.
Which.co.uk? suggests using pocket money as a teaching aid rather than a bribe.
Shepherds Friendly insists that visible progress, like a growing saving jar, means far more to a child than lectures ever can.

These insights certainly reinforced much of what I saw at home. The best pocket money tips are simple, consistent, and easily trackable.

How Much to Save Each Week by Age

Age Range	Suggested Allowance	Weekly Saving Target (20-30%)
5-7 years	£2-£3	£0.50-£1
8-10 years	£3-£5	£0.75-£1.25
11-13 years	£5-£10	£1-£3
14-16 years	£10-£20	£2.50-£6

Based on UK data from GoHenry, Nimbl, and Rooster Money

A Real Story from Our House

Last year, my daughter Lucy decided she wanted a £25 art kit. She already had £18 from saving a little each week. She skipped one trip to the shop and added that extra £2. Four weeks later, she proudly bought the kit herself.

The moment she counted her savings at the till, her smile said everything. No lecture could have taught her that better. It is these tiny steps that make pocket money tips come alive.

Teen tracking pocket money and savings on a smartphone app

Common Mistakes Parents Make

Even the best systems can go off track. Here’s what to avoid:

No clear rule for saving vs. spending; kids need structure.
Changing amounts too often. Consistency is what builds trust and habit.
Skipping the conversation. Talk about why saving matters.
Treating allowance as a reward. It’s a teaching tool, not a bribe.

These lessons took me a few years and a few tears to figure out. Once we found our rhythm, everything felt easier.

Key Takeaways

Pocket money acts as a simple way of teaching financial confidence.
Children should save 20-30% of their weekly allowance.
Visible savings tools help children stay motivated.
Conversation is better than rules.
The best pocket money tips are about consistency, not perfection.

Conclusion: Build Confident Savers, One Pound at a Time

If there is one thing I have learned from raising four kids, it’s that money lessons don’t start with bank accounts; they start at the kitchen table. The best pocket money tips aren’t about strict rules or fancy charts. They’re about creating habits that help kids feel proud of every coin they save.

One of the most accessible and potent teaching tools that we have as parents is pocket money. Handled with care, it becomes much more than a children’s allowance UK tradition; it becomes a foundation for real financial confidence. Whether they save 50p or £5 each week, what matters is that they learn how small savings grow, and how patience pays off.

In our house, we’ve seen the difference it makes. From my youngest, who now excitedly counts the coins in her piggy bank to my teenager, who proudly records his savings progress on an app: all the small steps, guided by consistent pocket money tips, have helped our children learn the lessons of budgeting, planning, and delayed gratification that they’ll carry into adulthood.

So, as you plan your family’s allowance routine, remember that you’re not just handing over money. You’re teaching kids about money, discipline, and the freedom that comes with financial awareness.

Start simple: Choose an amount, decide what portion will be saved, and celebrate every small win together. By next summer, you may be surprised by how much your children have saved and how much they’ve learned along the way.

If you found these pocket money tips useful, be sure to check out our guides on family budgeting, saving challenges for kids, and how to teach money skills through everyday life at BudgetKin.com. Let’s keep raising a generation that’s confident, capable, and ready to take control of their finances one weekly allowance at a time.