THE children in your family may be a few years away from starting their working lives – but in many homes, youngsters have already started learning about the world of earning.

New research shows how the ‘pocket money economy’ is a thriving part of family life, with more than three-quarters of parents giving their children a regular allowance, according to a survey by Santander. Many also pay their brood more on top, according to the poll, which quizzed parents as well as children aged five to 15. Nearly a third pay their children to complete household chores, while 18 per cent reward good behaviour at school.

But handouts can also be reversed in the form of ‘fines’, with children paying parents back for uncompleted chores or bad behaviour at school. For parents, the pocket money economy is a great way to give children an early taste of what it’s like to earn, spend and save cash.

Ann Griffiths, senior policy manager at Money Advice Service (MAS), which offers free money tips, says a recent study it conducted found nine in 10 parents feel it’s important to help their children learn about cash. “When it comes to when is right to teach your children about money, we know from our research that younger is better,” she says. “Starting them early gives them experiences with money that will help them later in life. The more parents talk to their children about money topics, the better they are at making spending and saving choices.”