BY JOHN ELLIS, FINANCIAL ADVISOR
Today the way we give pocket money to our children has changed dramatically, moving from cash to digital transfers through various digital apps.
According to a recent survey commissioned by the Teachers’ Union of Ireland Credit Union (TUICU), Irish parents typically begin giving their children pocket money around the age of nine. The study, which surveyed more than 800 parents, found that 86% of these parents believe their children should earn their allowance by completing work around the house. This approach encourages children to see the connection between work and reward, instilling fundamental values around money early on.
TUICU CEO Paul Roche said that “linking pocket money to chores helps children think about how they spend and save what they earn,” a sentiment echoed by many parents who see allowances as both a means to impart responsibility and teach financial literacy.
The study discovered that, while cash remains common, it is slowly being overtaken by digital methods. Fewer than half of parents now provide pocket money through traditional cash, in contrast to digital wallets being used by nearly 60% of parents. For many, the wallets provide flexibility, enabling parents to transfer pocket money instantly while also offering a way to monitor how their children use their money.
Paul Roche explained that digital wallets allow parents to engage their children in financial responsibility in a format suited to modern life. “It’s fascinating to see how this has developed,” he said, comparing the change from a 50p coin once every couple of weeks to today’s digital deposits,”. He said. He sees these platforms not only as a financial tool but as a teaching moment, where children can learn budgeting, saving, and spending responsibly in real-time.
While digital tools offer a streamlined solution, they are not a universal choice for every family. Some parents prefer more traditional methods, valuing the tangible experience of cash, particularly for younger children who may benefit from the physical act of handling money. Additionally, some parents choose to lodge pocket money in credit union accounts to encourage saving habits.
The TUICU report highlighted the role credit unions have long played in the financial education of young people. Many Irish families still have memories of taking their children to lodge birthday or communion money, which often formed the child’s first experience with banking and savings. Through credit union accounts, parents can help children set goals and understand the importance of saving for the future.
The survey also found variation in how pocket money is distributed, with two-thirds of parents giving allowances on an ad hoc basis, adjusting amounts and timing as needed. Whereas one-third prefer a more structured system, providing the same amount at regular intervals.
Considering these findings, TUICU’s Paul Roche encourages parents to consider pocket money as part of a larger goal: to teach their children financial responsibility in a format that fits their family and creates a powerful opportunity for teaching lifelong skills.
As financial habits are formed early, we as parents and grandparents are called to think carefully about how they introduce children to money management. Whether through digital wallets or traditional means, pocket money can be a stepping stone to a lifelong understanding of financial independence.
086 8362633
