At this stage, it's all about the basics. What's the difference between a need and a want? How do we earn money? These questions will help your child build a strong foundation for some cash clever habits when they're older.
Giving your child pocket money is a great way to start their education on managing money. Consider setting it up as a reward for doing extra chores or tasks. It can show your child the importance of earning money, rather than having it handed to them.
How much you give, when you give it, or even whether you give it at all depends on your own preferences.
Check out our blog for more pocket money tips.
It's ok not to give your child pocket money. If you still want to teach them the value of spending, saving and sharing, why not create a point system?
Points could be swapped for things like TV time, computer time or other treats your kids enjoy. They could save their points and even trade them with their siblings for favours, and learn the basic concepts of "spend, save and share".
Consider thinking about dividing chores into paid jobs vs family jobs. A family job might be something like making their bed, or setting the table, which your child is expected to do normally. A paid job, which earns pocket money, could be something a parent would normally do, like washing the car or folding laundry.
Use our helpful resources to make pocket money fun.
Spending pocket money helps children learn about buying things. It's OK to let them make a few mistakes, and have regrets over buying something they don't really want or need. Talk to them about it when it happens. See if they can come to their own conclusions about what they want to do with their money.
It's also OK to put some rules around their spending. For example, if you're concerned about their teeth or health, you might limit how much they can spend on sugary treats.
Every child and every family is different, and as a parent you know best when it comes to what your child needs.
Take a look at our helpful Needs vs wants game in the resources.