Pocket money by age: saving, spending and Eid salami (5–17)

Pocket money by age is a question almost every family faces: when to start, how much to give, and what to do when it's all gone by Tuesday. Then Eid comes, the salami piles up, and a child who had nothing suddenly holds more money than ever before.

Most children learn about money the way they learn anything else: by handling a little of it, making small mistakes and trying again. A few calm rules and the chance to choose often teach more than lectures about the value of money.

No amounts in taka are given here, on purpose: what's right depends on your family's budget and on what the money has to cover. Instead you'll find ages, a table, words to use, an Eid plan and a 7-day plan.

When to start pocket money, and how much to give

Many families start pocket money, or an allowance as some countries call it, around 5–7, when a child can count coins and understands that once money is spent, it is gone. There is no single right amount. What matters more is that it is regular, small enough to manage and clear about what it covers. Five questions help you set it:

1. 1What must it cover? Treats only, or also tiffin extras, stationery, rickshaw fare or phone data? The more it covers, the bigger it needs to be.
2. 2What fits your budget? Base it on your family's money, not on what a classmate gets.
3. 3Weekly or monthly? Weekly suits younger children; a monthly amount teaches teens to plan.
4. 4When will it grow? Many families raise it at a birthday or a new class, often with a new responsibility; some add a small fixed amount for each year of age.
5. 5What happens if it runs out? Usually nothing extra until the next payday, so your child feels the result of a choice while the stakes are small.

Many families keep pocket money and chores separate: everyday jobs are unpaid, because everyone helps at home. Whether to pay for extra jobs is covered in age-appropriate chores for kids.

Pocket money by age: a guide from 5 to 17

Use this pocket money by age guide as a rough map; every child is different, and many manage part of the next row.

The table has no amounts on purpose. A fair sum at a Dhaka private school may differ from one in a district town, and both can teach the same skills.

Teaching kids about money: spend, save and give

Teaching kids about money works best with something they can see and touch, and a saving habit for kids usually starts with a jar. For younger children, three jars, boxes or a clay money bank make every choice visible:

1. 1Set up three containers: spend, save and give. A clay money bank works well for saving, because it's hard to open on a whim.
2. 2Agree a simple split, such as most for spending and a little each for saving and giving, and let your child drop the money in.
3. 3Choose a saving goal together, such as a football, a book or a set of colours, and stick a drawing of it on the jar.
4. 4Let them spend their own spend money, even on things you wouldn't choose, within your family's rules on junk food. A disappointing toy teaches more than a lecture.
5. 5Let giving be their choice: a gift for a grandparent, food for a neighbour, a school collection or a cause they care about.
6. 6Count together each week, and celebrate when a goal is reached.
7. 7From about 10, move from jars to a small notebook, and later to a student savings account opened with a parent.

Eid salami: how should a child spend, save and share it?

Eid salami, the money elders give children on Eid, is often a child's biggest money of the year, and a lovely chance to practise everything above. It also raises questions: who keeps it, how much can be spent, and what about the salami your family gives other children?

• Agree the plan before Eid, not on Eid night: part to spend, part to save and part to give. Write it down for older children.
• Let some be truly theirs: spending a little of their own salami at the Eid fair or a shop, with you nearby, is part of the joy.
• If you keep it safe, say so honestly: how much, where and for what. Taking it all “for safekeeping” and never mentioning it again can feel like a loss to a child.
• If some goes to family costs, such as school things or the salami you give other children, explain it and still leave your child a share.
• Giving and thanks: let your child choose someone to share with, and thank relatives with a call or a note; see teaching children manners and values.
• Digital salami: when relatives send salami to a parent's mobile wallet, count it with your child as you would cash, and move their share into the jar or their savings.
• Cousins: in joint families, agree among the adults on similar salami for children of the same age, and avoid comparing who got the most.

Teen money management: mobile wallets, data and in-game spending

Older children and teens handle more and more money on a phone: coaching fees, data top-ups, online shopping and in-game purchases. Digital money is easy to spend because it doesn't feel real, so a few rules help:

• Keep your PIN private: never share it with a child, and change it if you think they have seen it.
• Teen accounts: teens of about 14 and over can often have their own mobile-wallet account, linked to a parent's and with limits. Rules change, so check the current ones with your provider, and set it up together.
• Turn on a password for every purchase in app stores and games, and never save a card or wallet on a child's device.
• Agree game spending in advance: a fixed amount from pocket money or salami, not in the moment of wanting. More in gaming addiction in kids.
• Warn about scams: “free diamonds”, prize messages, “double your money” offers and anyone asking for a PIN or an SMS code are usually scams.
• Look at the statement together once a month, as a chat about choices, not an inspection.

Money and children in a Bangladeshi home

Money in many Bangladeshi homes comes with its own customs: relatives who press notes into a child's hand, joint households and a busy school gate. A few situations come up again and again; for the wider picture, see parenting in Bangladesh.

• Money for school: a young child with packed tiffin may not need money at school at all. Older children can carry a little for a planned snack, plus a small amount kept separately for emergencies, such as a rickshaw home or a phone call.
• Safety: teach your child to keep money out of sight, and that if anyone threatens them for it, they hand it over and tell you. They matter far more than the money.
• Relatives who give money: thank them warmly, then the money joins the same spend, save and give plan.
• Sons and daughters: give both the same pocket money and the same money lessons. Girls need to learn to budget, save and run an account just as much as boys.
• House help: children ask their parents, not house help, for money, and never send them out to buy things secretly.
• Talking about money: children notice when money is tight. Calm, simple words, such as “We're saving for Eid, so no new toys this month,” teach more than silence or worry.

A 7-day plan to start pocket money

Pocket money by age works best when you start simply and watch what happens. Note one line each day: what your child spent or saved, and how they felt about it.

1. 1Day 1: decide what pocket money will cover, how often you'll give it and on which day.
2. 2Day 2: tell your child the plan warmly, and set up spend, save and give jars or a notebook.
3. 3Day 3: give the first pocket money, and let your child divide it themselves.
4. 4Day 4: go to a shop together; let them choose, pay and count the change.
5. 5Day 5: choose a saving goal and draw it on the save jar.
6. 6Day 6: if the money's already gone, stay kind and hold the line until payday.
7. 7Day 7: count together, notice what went well and adjust one thing for next week.

When is money a sign of something more?

Most money mistakes are part of learning. Look more closely, and act the same day on the safety signs, if:

Pocket money by age teaches slowly, one small choice at a time. ParentMind helps you note what happens each day, see patterns and get guidance: how ParentMind works.