The most important facts about pocket money for young people in brief
An overview of the most important messages from this article:
- Pocket money is incredibly important for young people to learn how to manage money.
- There are expert recommendations for the amount of pocket money depending on the age of your children.
- There are many more ways to learn even more about money. For example, budget money, pocket money accounts or pocket money cards with an app.
Why do young people need pocket money?
Our kids learn algebra, grammar and the bees and flowers at school. But what about the other things you need to live? Dealing with money in particular determines luck and misfortune later in life: How should you handle money sensibly as an adult if you have never learned it before?
It's almost like driving a car: Anyone who is only ever traveling as a passenger and in their own neighborhood gets moderate panic attacks just at the idea of driving alone from Munich to Berlin. The only difference: When it comes to money, you can't travel by train instead. In order to get along in life as an adult, you have to be confident in handling money.
And wow, that's the answer to why pocket money is so incredibly important: Without pocket money, young people don't learn how to handle money. Five exclamation marks. Underlined twice and three times.
That's why: don't send your kids from Munich to Berlin without a navigation system and without a driver's license. Prepare them for real life as early as possible with their pocket money. We'll tell you how to do it!
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The 5 golden allowance rules for parents
For the learning effect of pocket money to really work, you must follow a few rules as a mom or dad. Namely to this:
Rule 1: Talk about it!
Talk to your kids about money and pocket money. Discuss when and how much pocket money they will receive and what it is intended for.
Rule 2: Don't interfere!
Your kids get their pocket money at their disposal. They can do what they want with it (as long as it's legal, of course).
Rule 3: Pay pocket money regularly — without being asked!
You always pay your pocket money punctually on the agreed date. No ifs or buts and without prompting. Your kids don't have to ask for it, they can rely on it.
Rule 4: If broke, then broke!
If your kids immediately hit their pocket money on the head on the first day, they'll be left with empty pockets afterwards. That's the way it is and that is exactly the most important learning effect. After all, as adults, they can't just get fresh money if they're bankrupt. That is why there is no advance and no ten in between.
Rule 5: No conditions!
A 5 in math is no reason to cut your pocket money. The allowance comes on time and in the agreed amount. If your kids have eaten something, let them stutter the damage in installments. However, the payout of pocket money remains the same.
That's how much it should be: recommendation and pocket money table
If you ask yourself “From when pocket money and how much anyway? “Are you in good company. We at Bling keep looking at questioning mom and dad faces when it comes to this topic. But that's not bad at all, because there are a lot of clever people who have developed practical recommendations about this. The Youth Welfare Office, for example, or the Money and Budget Advisory Service. And that is exactly what we are presenting to you now.
H3: The 2023 pocket money table: A recommendation for pocket money
The pocket money table is an annually updated recommendation as to how much pocket money is useful for children and young people per age. You can orient yourself to that. For example, you can find them directly at Federal Ministry for Family Affairs, Senior Citizens, Women and Youth — or right here in your Bling magazine:
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Pocket money at 10 years
Experts recommend that pocket money be paid out monthly from the age of 10. It's best to start with €16.00 to €18.50 every month.
Pocket money at 11 years
If your child is 11 years old, you should pay out pocket money monthly. Experts recommend a sum of 18.50 to 21.00€.
Pocket money at 12 years
At the age of 12, your child should receive pocket money once a month, preferably 21.00 to 23.50€.
Pocket money at 13 years
At the age of 13, young people receive pocket money every month. Experts recommend 23.50 to 26.00€ per month.
Pocket money at 14 years
At 14 years of age, your child should have 26.00 to 31.00€ per month at leisure. Experts also recommend that young people aged 14 and over pay additional budget money for everyday needs, such as clothing or lunch away from home.
Pocket money at 15 years
15-year-olds should receive 31.00 to 39.00€ per month. In addition, experts recommend budget money for everyday needs such as cosmetics or a bus ticket.
Pocket money at 16 years
According to experts, allowance of 39.00 to 47.00€ is appropriate at the age of 16. In addition, you can pay budget money for everyday expenses, such as school supplies.
Pocket money at 17 years
According to experts, allowance of 47.00 to 63.00€ per month at leisure is appropriate from the age of 17. You can also pay out a reasonable budget money for everyday needs such as cell phone costs or clothing.
Pocket money at 18 years
At 18, your child is already big — and maybe even in education. If it still lives at home and depends on you financially, according to experts, a monthly allowance of 63.00 to 79.00€ is appropriate. In addition, budget money is useful for everyday needs, such as lunches away from home or cosmetics.
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Bling tip: Use budget money
Your kids can spend their pocket money on what they want. No requirements, no conditions. If you want to make them a bit more money wise, introduce additional budget money. This is recommended for young people aged 14 and over and is extra money for everyday needs. For example for school supplies, clothes, cosmetics or the bus ticket.
It's best to start with just one part, for example with clothes: You pay a certain amount of money every month and from now on you're off the hook for every shopping trip. Of course, you can also make special arrangements — for example, if you need a new mucky-warm winter jacket.
There are also official recommendations for budget money - developed by Money and Budget Advisory Service of the Sparkassen Finanzgruppe and the German Youth Institute:
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Important: Recommended pocket money does not mean mandatory!
You decide exactly how much pocket money you pay out. Not the Youth Welfare Office, not the Federal Ministry and no one else. Don't let anyone put pressure on you — not even other parents who pay more. After all, pocket money and budget money must also fit into your own household budget. And that is different for everyone.
It is important: Talk openly with your kids about the fact that the allowance is adequate compared to the household income. Always remember the golden pocket money rule number 1: Talk about it!
How should you pay out your pocket money?
You decide together how you pay out your pocket money. Remember that cash is becoming less and less important. Even at the bakery and in the ice cream parlour, you can usually pay by card today. Wouldn't it be cool if your kids learned how to handle it right away, wouldn't it?
So consider opening a pocket money account with the bank, to which you transfer the money every month by standing order. This directly has several advantages:
- You won't forget to pay out your pocket money anymore.
- Your child already has an account when they receive a salary.
- Grandma and grandpa can also easily transfer cash gifts to their bank accounts.
- Your child learns how to handle their own bank account early on.
Another super practical alternative is the Bling Card. Your child gets an app and a card to pay for, you get a parent app. The two of you could do everything you want to do with your apps: save money, distribute small paid extra tasks and, above all, keep track of things. You can find out more about it here.
It is very important: No matter which payout method you choose, you should decide it together. Because only if you really talk about money topics openly and on an equal footing will your child learn something about it. And that's what it's all about.
