Parents in the Czech Republic provide their children with an average of CZK 300 ($14) per month as pocket money, according to a survey conducted by Raiffeisenbank. The study found that more than half of the surveyed parents give pocket money to their children, with over one-third also setting up savings accounts for them. The most common amount given is CZK 300, representing an increase of CZK 50 compared to the average amount reported in a survey by the Czech Banking Association two years ago.

Pocket Money as an Educational Tool Psychologists recommend that parents begin giving pocket money to their children as an educational tool to teach them financial management from an early age. The amount provided should be consistent, and parents are encouraged to start with smaller amounts to instill the principle of reciprocity in their children, teaching them that what goes around comes around.

However, it is important to note that pocket money should not be given as payment for household chores. Instead, parents should encourage children to participate in chores as a regular responsibility within the family unit.

Combining Pocket Money with Part-Time Jobs Parents are also advised to introduce the concept of social exchange to their children, wherein one person gives and the other reciprocates. Psychologist Jeroným Klimeš suggests that preschool and primary school children should be taught about financial limits. Wealthier parents may need to artificially create these limits and teach their children skills that come more naturally to children from lower-income families.

While pocket money serves as a valuable tool for teaching financial responsibility, it should not be the sole source of income for children. Many parents also encourage their children to seek part-time jobs, which offer opportunities to learn essential life skills and gain an understanding of the value of money.

Spending Habits and Parental Communication According to Creditas, a Czech bank, children and teenagers typically allocate their pocket money toward food and drinks, with 39% of respondents highlighting this as their top expense. Older girls tend to spend their money on clothing (27%), while boys show a preference for mobile games or game consoles (10%).

Parents play a crucial role in communicating with their children about their spending habits. The survey by Raiffeisenbank indicates that two-thirds of parents engage in conversations with their children regarding their spending, while one-fifth of parents overlook their children’s purchase choices. Open communication can foster financial literacy and responsible spending habits in children.

Article by Prague Forum