Here’s a discussion point for the school gate: The Tooth Fairy now pays an average of £4.79 per tooth, according to the NatWest Rooster Money 2026 Pocket Money Index. That’s nearly two weeks’ pocket money, based on a five-year-old’s average.
The index, based on more than half a million children, shows that pocket money allowance increases steadily from £2.69 at six to £4.01 at 12, but is still significantly below the commonly advocated £1 per year of a child’s age. So if you think you’re being stingy, you are probably correct.
Should pocket money be linked to chores?
However, what you pay is only part of the argument. The really big row is over whether children should earn their pocket money.
Team “earn it”
Proponents argue that paying children for chores teaches the crucial lesson that money has to be earned. Plus, by linking earnings to an hourly or daily rate, you help them value it. Understanding the effort needed to earn money means they are less likely to waste it on frivolities.
Interestingly, parents clearly believe that some pocket money chores are worth more than others. Mowing the lawn pays on average £3.52 per job, compared to 28p for making the bed. So a child who makes the bed is likely to think twice before forking out for sweets.
Team “family helps”
But opponents argue that pocket money chores miss the point about family life. Your parents never paid you to make them a cup of tea, so why should you pay your son to lay the table? Paying for everything turns every request into a negotiation. “Can you do it?” becomes “What’s it going to cost you?”
They say that pocket money enables children to learn to manage money, whether they have to work for it or not.
The middle way
Many families take a mid-way option, by giving children a weekly allowance for being part of the family, plus earning extra for any big jobs that go above and beyond the call of duty.
Getting the right amount of pocket money
How you manage pocket money is a family matter. The key test is whether your child can afford something they really want after a few weeks of careful saving. If not, their weekly pocket money might be too low to teach saving and budgeting. If they can buy it immediately, it might be too high.
Key tip: Keep the amount of weekly pocket money the same to help children learn how to budget. One big payment is not nearly as helpful as a regular, smaller sum.
For a full guide on how much pocket money children should get by age, see Smartmonies’ 2026 guide.
