Pocket money is a great way to teach young children how to save. Find out how much their friends get by checking with their mums and then base yours accordingly.
You can start as soon as your child’s old enough to understand that different things cost different amounts. But be consistent. If the rule is that they have to save up for a certain thing, don’t give in or you’ll be defeating the object of the lesson.
Link pocket money to jobs around the house – even little ones can do this. Have a basic rate and then add a bonus for small tasks. As they get older, increase the amount they receive.
Dorothy Rowe, psychologist and author of The Real Meaning Of Money