“Can I have it?” If you have been to a gift shop, theme park or seaside arcade this summer, you will have heard it more than once.
The holidays are full of spending moments, which makes them a perfect time to teach children about money. Not through lectures, but through small, real choices they get to make themselves.
Why Pocket Money Matters
Children learn about money by handling it. Pocket money gives them a safe space to practise: to save up, to spend, to make mistakes and to learn from them while the stakes are small. A child who learns that once the money is gone, it is gone, has learnt a lesson worth far more than the toy.
How much you give is entirely up to you and your budget. Consistency matters more than the amount.
Try the Three Jars Method
Give your child three jars, pots or envelopes, labelled:
- Spend: for treats now
- Save: for something bigger later
- Give: for helping others, such as a charity, a church collection or a gift for someone
Agree how the money is split, such as a third in each. It is a simple, visual way to show that money has more than one purpose, and that generosity is part of a good life.
Ideas by Age
Ages 4 to 7: Use real coins so they can see and count them. Let them choose a small treat at the shop and hand over the money themselves. Talk about how many coins things cost.
Ages 8 to 11: Set a savings goal together, such as a new book or game, and track it on a chart on the fridge. Let them make a holiday spending budget and stick to it, even if they regret a purchase.
Ages 12 and up: Consider a children’s bank account or prepaid card with parental controls, so they learn about digital money too. Talk about online spending, in game purchases and how to spot a scam.
Let Them Make Mistakes
This is the hardest part. If your child spends all their holiday money on day one and has nothing left for the ice cream on day five, resist the urge to rescue them. Be kind, but let the lesson land. They will remember it next time.
Talk About Your Own Money Choices
Children learn a lot from watching us. Talk out loud about everyday choices:
- “We’re going to wait for the sale before buying that.”
- “I’m saving a little each month for our holiday next year.”
- “That’s a good price, let’s compare it with the other shop first.”
You do not need to share worries about money, but showing calm, careful decisions teaches more than any rule.
What You Cannot Control
You cannot control the adverts, the pester power or the friend who seems to have everything. You can give your children the skills and confidence to make good choices of their own.
The habits they build now, of saving, spending wisely and giving generously, are a gift that will last them a lifetime. That is worth a few summer arcade tears.
Read next: Back to School on a Budget and How to Prepare for a Rainy Day: Financial Resilience for 2026/27.
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