Pocket money calculator
There is no official amount of pocket money, so this tool applies a common budgeting rule of about £1 a week for every year of a child’s age, then works out the weekly figure, the yearly total, and what it could grow to by eighteen if saved at the growth rate entered.
How is the suggested amount worked out?
The weekly figure is the child’s age multiplied by the amount set per year of age, defaulting to £1.
That rule is a common one because it scales with age: a young child gets a small, manageable sum and an older one gets enough to cover more of their own spending.
It is a starting point rather than a fixed rule, so the per-year amount can be adjusted.
The yearly total is the weekly amount across 52 weeks.
The saved figure assumes the child banks every week’s money and it grows at the rate entered, compounding monthly until age 18.
That projection illustrates how a weekly amount could accumulate rather than predicting an exact balance, since real savings returns vary and are not guaranteed.
What would this look like for an eight-year-old?
Take an eight-year-old on the £1 rule, which is £8 a week and £416 across the year.
If that amount were saved in full and grew at 3.0% a year, the pot would reach an estimated £4,834 by age 18.
Of that total, roughly £674 is growth on top of the amount paid in.
Common questions
How much pocket money should I give by age?
There is no official amount, but a widely used rule of thumb is about £1 a week for each year of age. On that basis an eight-year-old gets around £8 a week and a twelve-year-old around £12. Adjust it to what your household can afford and what the money is meant to cover.
Should pocket money be tied to chores?
That is a parenting choice, not a financial one. Some families pay a flat allowance so children learn to budget, others link part of it to jobs around the house. Either can work. The calculator only sets the amount, not the conditions.
What if I want to give more or less than £1 per year of age?
Change the per-year figure in the tool. The rule is only a starting point. Older teenagers who buy their own clothes or travel often get more, while younger children with fewer costs may get less.
How much could pocket money grow if saved?
The tool banks the weekly amount and grows it at the rate you choose until age 18. At a modest 3.0% a year, an eight-year-old saving £8 a week reaches about £4,834 by 18, of which roughly £674 is growth. Real returns vary and are not guaranteed.
Does pocket money affect benefits or tax?
No. Money a parent gives a child is not income for tax, and small gifts do not affect means-tested benefits. Interest on a child’s savings can be taxable in rare cases where a parent provides large sums, but ordinary pocket money is well below any threshold.
How is the suggested amount worked out?
The weekly figure is the child’s age multiplied by the amount set per year of age, which defaults to about £1. The yearly total is that weekly figure across 52 weeks. If the money is saved, the tool compounds it monthly at the growth rate entered until age 18, to illustrate rather than predict what a savings habit could produce.
What would this look like for an eight-year-old?
On the £1 rule an eight-year-old gets £8 a week, or £416 across the year. Saving all of it at 3.0% growth a year gives an estimated pot of £4,834 by age 18, of which around £674 is growth rather than money paid in.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.