A recent survey conducted by the investment platform Portu has revealed that in the Czech Republic, nearly three-quarters of parents provide some form of pocket money to their children. Out of these, 58 percent of households with school-age kids choose to provide a regular monthly allowance.

Among parents offering pocket money, the majority (around 60 percent) allocate up to 500 Czech Crowns per child per month. A fifth of parents contribute between 500 and 1000 Czech Crowns monthly, while 11 percent provide more than 2000 Czech Crowns in pocket money, which is often seen in families with high school and university students.

The survey also highlighted that pocket money is more prevalent in families where at least one child is in primary or higher education. On the other hand, 27 percent of respondents do not provide pocket money, which is more common in families with preschool-aged children.

Fostering financial literacy was noted as one of the key reasons for providing regular pocket money to children. It allows them to understand the value of money, learn to manage a limited budget, and develop financial responsibility.

Marek Pokorný, an analyst at Portu, emphasized that providing regular pocket money is an effective way to teach children about financial management. Younger children can use a piggy bank, while older kids can have their bank account and card, treating their pocket money like a salary they must manage until the next “payday.”

The survey also shed light on the typical amounts of pocket money provided by parents. About 26 percent of parents give their children 100 to 300 Czech Crowns monthly, while 25 percent provide pocket money ranging from 300 to 500 Czech Crowns. Eight percent offer less than 100 Czech Crowns.

Higher pocket money amounts are often associated with higher expenses and the needs of middle and high school children. In families with at least one high school student, nearly a third of parents allocate 700 Czech Crowns or more monthly for pocket money. Families with university students often provide pocket money exceeding 2000 Czech Crowns due to the associated costs of accommodation, tuition, food, and study materials.

In a related June survey by NMS Market Research for Raiffeisenbank, children typically receive pocket money in cash, with the average amount being around 300 Czech Crowns per month.

Article by Prague Forum