Less than half of parents still give pocket money entirely in cash, how reasonable is that? † Capital

videoNow that we pay so much digitally, we are increasingly giving our kids digital pocket money. Four years ago, nearly three-quarters of parents were still making a little pocket money, last year it wasn’t even half. Not all parents are comfortable with that.


Sunny Walters


Last updated:
10:35

In 2018, pocket money was still paid in full in cash in 74 percent of cases, and in 2021 this was only 48 percent. This is evidenced by a new ING survey of financial education among nearly a thousand parents.

Parents are also increasingly offering common pocket money, i.e. cash and digital. Four years ago, 10 percent of parents did, and now that number is 33 percent. “This is the first generation of children growing up with parents who hardly use cash themselves. Adults now almost always pay by debit card or even by phone. So you also see a change in spending,” says Karen Wartina, a specialist in children and youth at ING Netherlands. pocket”.


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Parents fear that children spend easily because they do not feel how much they have

Karen Wartina, Child and Youth Specialist at ING Netherlands

Teaching the value of pocket money

For the majority of parents, digital money is not an issue in financial education. However, 38 percent of survey respondents said they find it difficult to teach their children how to handle digital money and cash. Artina: They wonder how they can teach their children the value of money. As a kid you used to have a jar of money, digital money is a lot less realistic. Parents fear that children spend easily because they do not feel how much they have.”

That’s why toddlers still wait a little longer before giving them digital pocket money, Wartena sees. Most parents start pocket money when the child is 5 or 6 years old and then pay pocket money mainly in the form of coins. At that age, they are often not independent enough to handle digital money.”

Wartena argues that the “digital revolution” has also not changed the way parents practice money with their children. “It still happens in the supermarket, where the kid can help pay with the pin. Or where they compare prices together and then show the receipt at home. The kid learns a lot from that.”

If you give your child pocket money, he learns how to handle money. But when do you start and how much expense do you provide? Read more about pocket money at Ouders van Nu.

When do you give out your debit card?

What Wartena often sees: Parents asking for a kids account for their kids ahead of time and also asking for a debit card right away. This is possible with us from the age of 6 years. Then they let their kids practice it so they can handle it with confidence when they go to high school and become more independent.”

Research shows that 69 percent of all 4- to 7-year-olds have their own checking accounts. In the 8- to 11-year-old group, this percentage is already 79 percent. When they reach high school age (12-17 years), 91 percent have one tooth. The number of its bank cards is slightly less. 13 percent of children ages 8 to 11 have their own pass, while high school students have one in more than 60 percent of cases.

We must not forget that the debit card is a huge responsibility for children, says Wartina. It’s hard for kids to remember the secret code and of course they have to hide it from their friends. This is often very complicated.”

The picture is for illustration. © Getty Images

How much pocket money do you give to your child? Three tips from pocket money expert Anello Van Nort

1. How much pocket money do you give? The Nypod website provides an overview of the average amounts parents give their children. For children aged 7-8, this is an average of 1 to 2 euros per month, while a 12-year-old high school student receives an average of 17-20 euros per month. Van Nort: I think it’s especially important to think about the purpose of pocket money. Is it for the little extras, or should your child also buy Christmas presents from them? This changes the amount. Talk about it and discuss what it includes. Some kids get ahead of this more than others. Plus, of course, it depends on the parents’ wallet.”

2. Cash or digital pocket money? Van Noort: I would always recommend starting with criticism. Then the children see money as a medium of exchange. The value is very clear. If they buy something for 4.50 and they have 5 euros, they see that their piggy bank is actually pretty much empty after that. From group 6 or 7, I advise you to start giving digital pocket money. In high school, debit card payments, sending Tikkies, and transferring are almost more natural than cash, so it’s good if the kids have already practiced and know how it works.”

3. Including children in the expenses? “Parents often forget to talk to their kids about money,” Van Nort says. “Involve the children in the choices you make. Ask them what they think is more expensive, the cheese or sprinkles on the table. Or explain to them what preceded the purchase you made at the store. The children see us playfully passing by somewhere, but don’t realize that we worked from Yes, and that the choices have been made. Young children often say, “Then why don’t you go with a pin?” That’s because we forget to talk about the value of money.

Frame: Marlo van der Schreyer

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