A pocket money is money parents give to their children for personal expenses, travel money, and breakfast is not included. The purpose of this is to educate the child in financial literacy and to find out how and where he will spend his free personal money. In the world, most children receive pocket money. Some spend it immediately on trinkets and sweets, and some save it for more important things. As a result of pocket money, they learn to manage their finances from an early age, and this will help them in the future to properly distribute money and live in prosperity.

Come to think of it pocket money is probably the stepping stone to financial literacy! It is the first way children start to understand the concept and value of money, and the importance of saving up so as to manage to buy something, or to plan so as to have enough for expenses that need to be made.

Pocket money refers to a small amount of money regularly given to children or adolescents by their parents or guardians. This discretionary allowance serves as a means for youngsters to manage their personal finances on a smaller scale, fostering financial responsibility and independence. Typically, pocket money is not tied to specific chores or tasks, distinguishing it from an allowance, which may have predetermined conditions. Parents may use pocket money as an educational tool, teaching children valuable lessons about budgeting, saving, and making choices. It allows young individuals to experience financial decision-making within a controlled environment, preparing them for future financial responsibilities. This modest financial autonomy also provides children with a sense of ownership and control over their resources, instilling foundational money management skills that can prove beneficial later in life.