Pocket Money & Kids Savings Calculator

The most widely cited Australian guideline is $1 per year of age per week — so a 10-year-old receives $10/week. However, the right amount depends on what the pocket money is expected to cover. If you expect the child to pay for their own entertainment, snacks, or bus fares, a higher amount is appropriate. ANZ's 2023 Pocket Money Survey found the average Australian child receives around $8–12/week. The most important factor is consistency and using it as a learning tool, not the exact dollar amount.

There are two schools of thought. Tying money to chores teaches the link between work and earnings — an important financial lesson. However, some family finance experts (including Dave Ramsey) argue that basic household chores are a responsibility, not a job, and separating the two avoids children refusing to do chores when they don't need money. A middle approach is to have a set of 'core' unpaid chores (making bed, tidying room) and optional 'bonus' chores that earn extra money. The commission model works well for teaching entrepreneurial thinking in older children.

Start with a physical, transparent container (a clear jar or three separate piggy banks labelled Save/Spend/Give) so young children can see their money growing. Progress to a bank account around age 8–10. Connect saving to a specific, visible goal — abstract concepts like 'saving for later' don't motivate children as well as 'saving for that Lego set.' Celebrate milestones. For teens, apps like Spriggy (AU), ZAAP, or a regular debit account with a parental overview teach digital money management. Matching contributions (e.g. 'for every dollar you save, I'll add 50c') powerfully reinforce saving behaviour.