How much pocket money should you give by age? A guide for Indian parents

Decide what pocket money is for

Before choosing an amount, decide what your child is expected to pay for. Pocket money that only covers treats can be small. Pocket money that also covers school snacks, stationery or a monthly phone recharge needs to be larger.

Example starting points by age

These are only examples to help you think — adjust them up or down for your family and city. Many parents start with a small weekly amount and raise it on each birthday.

• Ages 6–9: around ₹20–₹50 a week, given as coins and small notes.
• Ages 10–12: around ₹50–₹150 a week, possibly into a bank account.
• Ages 13–15: around ₹500–₹1,000 a month, covering some of their own expenses.
• Ages 16–18: a monthly budget that includes recharges, outings and travel — practice for a salary.

Use the Save–Spend–Give split

Ask your child to split every payment into three parts before spending anything. A simple starting rule is half to Spend, a bit less than half to Save and a small share to Give. Let them choose a savings goal so the Save jar has a purpose.

Rules that make pocket money work

• Pay on the same day each week or month — reliability builds trust.
• Don’t top it up when it runs out early. Running short is the lesson.
• Let them make small mistakes with their own money.
• Pay extra for real extra jobs, not for everyday chores everyone shares.
• Review it together once a month: what went well, what they’d change.

Should pocket money be cash or digital?

For younger children, cash is better — they can see and count it. From around 10 or 11, a minor’s savings account or a parent-linked account can help them see money as numbers on a screen. Keep the rule simple: no PIN or OTP is ever shared.