Pocket Money: An Age-by-Age Guide and Management System

Think to act better

Should pocket money be given in exchange for chores?

Everyone has their own philosophy on this subject. At Les Belles Combines, we favor an approach where pocket money is given unconditionally. Why? To allow the child to learn to manage their money through experience: sometimes making mistakes, making disappointing purchases, and learning valuable lessons from them.

If pocket money is only given in exchange for completed tasks, some children may receive very little or none at all, simply because they don't participate enough in family chores. This would deprive them of essential financial learning opportunities.

We believe that children should not be "paid" for their household chores. The fundamental message we want to convey is that everyone contributes to the home to make family life pleasant. Rewards from the General Store for good behavior or acts of autonomy, just like regular allowance, are part of the same philosophy: fostering a positive and harmonious family dynamic.

That said, it may be relevant to offer a bonus to highlight an exceptional contribution. A child who shows initiative, who completes all their tasks in Octave without needing to be reminded, or who shows particular care in their work, could receive a small bonus. This approach is similar to that of an employer who rewards quality of work and commitment, beyond simply performing expected tasks.

4-6 years old: Exploration phase with the General Store

At this age, children are too young to handle real money independently, but they are perfectly capable of understanding the concepts of exchange and value.

The General Store as a learning tool

The General Store is an educational product created by Les Belles Combines, specially designed to introduce children to financial concepts. Much more than a simple motivational system, it is a true pedagogical tool that allows children to:

• Understand the value of things

• Grasp the principle of exchange (tokens for privileges or small items)

• Learn to be patient to get something more important

• Discover the satisfaction of "earning" their own resources

Everything is included in the product box:

• A complete chart where the child can track their progress and earn tokens

• A savings book to "deposit" unspent tokens

• A small debit card to have fun playing store like adults

• Numerous stickers to determine the price of items, create sales, and make the experience fun and educational

• A detailed user guide for parents

By organizing regular store opening sessions, you offer your child the opportunity to learn the value of saving to obtain more expensive items or privileges. This is a valuable first lesson in delayed gratification, an essential skill for good future financial management.

7-10 years old: My first wallet

This is the ideal age to introduce real money and allow children to have their first concrete experiences with financial management.

First real money handling

At this stage, children can explore and manage:

• Small amounts received as gifts from grandparents

• Coins found or given occasionally

• Small specific budgets for special occasions

Special occasions to practice:

• A trip to the cinema with a budget for snacks

• A small amount at a fairground

• A budget to buy a birthday present for a friend

• A special day where the child can manage the purchase of their snack

Opening a first account

This is also the ideal time to open a bank account for a child:

• Accompany your child to open the account

• Plan regular deposits (even small ones) to show accumulation

• Regularly show them the statement or app to visualize savings

• Simply explain the concepts of interest and long-term savings

At this age, it's still early to set a regular allowance, but these occasional experiences lay the groundwork for a healthy relationship with money.

11-12 years old: First regular allowances

It is generally at this age that a fixed monthly allowance can be introduced, intended to cover small personal expenses.

Setting up the allowance

• Determine a monthly amount suitable for your family budget and the child's needs

• Clearly establish what this allowance should cover (hobbies, small treats, small gifts for friends)

• Set a regular payment date (for example, the 1st of the month)

Important lessons to convey:

• If the money is spent in the first week, there will be no advance for the following month

• Encourage the child to plan their expenses for the entire month

• Regularly discuss purchase choices and possible alternatives

• Introduce the concept of donation or sharing (perhaps 10% of the allowance for a cause close to their heart)

It is at this age that financial planning skills truly develop. Mistakes are normal and part of the learning process - it's better that they happen now with small amounts!

12-14 years old: The first debit card

An important step in financial autonomy: the first bank card, which marks entry into the world of electronic money management.

Introduction to digital banking

• Transfer the monthly allowance directly to the teenager's account

• Set daily spending limits with the bank

• Show them how to check their balance online or via an app

• Explain bank fees and how to avoid them

Increasing responsibilities

• Encourage small jobs for the family or neighborhood

• Show them how to receive and verify transfers for these services

• Gradually increase the allowance based on demonstrated financial maturity

• Introduce the concept of a budget on paper or a simple application

This is also the time to address financial security issues: PIN protection, precautions for online purchases, recognition of potential scams.

15-20 years old: Learning complete budget management

As they approach adulthood, young people must gradually take responsibility for larger budgets and develop almost complete financial autonomy.

Evolution of allowances

• Gradually increase the amount of allowances

• Transfer responsibility for certain specific budget items:

• Seasonal clothing budget

• School supplies budget

• Sports activities and equipment budget

• Outings and leisure budget

• Mobile phone budget

Preparation for financial independence

• Introduce them to more complex budget tracking tools

• Discuss long-term savings choices (studies, first home)

• Address concepts of credit, debt, and their consequences

• Encourage part-time jobs to supplement their allowance

• Involve them in certain family financial decisions to set an example

By the end of this period, your young adult should have all the necessary skills to manage their own budget autonomously and responsibly.

To facilitate this financial education, Les Belles Combines has created two practical tools that you can download now. My First Budget guides your child in their first steps towards autonomous financial management with a simple format adapted to their age. For parents, our Budget Delegation Planner helps you precisely determine which budget items to entrust to each child according to their age and maturity. These two complementary small tips will allow you to concretely apply the principles discussed in this article.

General tips for all ages

Consistency and transparency

• Respect your commitments regarding allowances (amount and regularity)

• Clearly explain your expectations and associated responsibilities

• Avoid using money as punishment or reward for unrelated behaviors

Open communication

• Create a judgment-free space for discussing money matters

• Share your own learnings and sometimes your mistakes

• Honestly answer questions, even if they concern family finances

• Take advantage of daily situations to discuss financial concepts

Balance between freedom and guidance

• Allow freedom to make mistakes with reasonable amounts

• Guide without imposing your own consumption values

• Recognize that each child has their own relationship with money (spender, saver, etc.)

• Adapt your approach to each child's personality

By following these progressive steps, you will give your children not only practical financial management skills, but also the confidence needed to make informed decisions throughout their lives. Money remains a tool, and like any tool, it requires learning to be used correctly. Starting early and in an age-appropriate manner is the key to a healthy and balanced relationship with personal finances.

🚀 Find this article and much more in the Octave app: shared calendar, collaborative task list, meal planner, centralization of family information, and autonomy tracking - your number one ally for an organized family life! 📱✨