How can I teach my children not to spend all their pocket money recklessly?

Tips for parents
Teach your kids
Pocket money


In order for children to learn about money management, they would first need to have some money to manage. Learning how to make use of their pocket money wisely is the first step of this important life journey. During the process, children can acquire a sense of responsibility and a disciplined spending habit.

Parents may be concerned that their children would spend recklessly, and run out of money. If this should happens, do not scold them, instead use this as a teachable moment to guide them:

1. Find out the reasons for over-spending

Do not blame your child. Be calm and find out where the money went.

2. Review the budget together

Go through the expense items with your child to see if they are in order. If not, you may consider adjusting the budget.  The budget should encourage children to save part of the money, and to spend and share the rest.

3. Record daily expenditure

Teach your child to record daily expenditure and review them.

4. Change the pay interval

Over time, if your child is able to budget capably, you can change the frequency from daily to weekly or even monthly to allow your child to have more responsibility to manage a longer-term budget.

5. Keep to your principles

If your child runs out of budget, do not immediately offer extra pocket money. Let your child experience and remember the consequences of their behaviour. After all, the best way to learn is from experience.

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4 March 2024