Pocket money calculator
Set your child’s age and see a sensible weekly amount, the yearly total, and what it could be worth if they banked it until 18. The default follows the common rule of about £1 a week per year of age.
How the guide works
The weekly figure is simply the child’s age multiplied by the amount you set per year of age, defaulting to £1. That rule is popular because it scales naturally: 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, not a rule you have to follow, so the per-year amount is adjustable.
The yearly total is the weekly amount across 52 weeks. The saved figure then assumes the child banks every week’s money and it grows at the rate you choose, compounding month by month until they turn 18. That last number is meant to show the habit’s value over time rather than predict an exact balance, because real savings returns move around.
Worked example
Take an eight-year-old on the £1 rule. That is £8 a week, which comes to £416 across the year. If they saved all of it and it grew at 3.0% a year, by age 18 the pot would be about £4,834, of which roughly £674 is growth on top of what went in. The point is less the exact figure and more that a small weekly habit adds up over a childhood.
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.