What do your kids know about money? One thing you know is they sometimes swap trading cards with friends or exchange an apple for biscuits.
This is called bartering, and long before money existed, humans were exchanging things such as food, crops, tools they had made and animal skins. So if your child is mature enough to instinctively do the same he/she is mature enough to start understanding how money works.
And before thinking about setting up a weekly allowance you need to know that if you don’t teach your child the basic foundation of how money works, finance related topics are not usually taught in schools. Which makes it your responsibility to teach your child ways of earning money, saving, spending, investing, planning and learning to wait for something you want.
Check out It doesn’t grow on trees by Jon Bryant and Chrystopher Needler.
According to the annual Halifax pocket money survey in the UK, the average amount of weekly pocket money is £6.20 ($9.30, €7.75). Around 70% of children save some of their pocket money and one in 10 saves it all!
Children are around 7 years old when they make a link between having something and paying for it. If they are taught about saving and to look forwards to buying something instead of having it then and there, it will inspire the right kind of habits later in life, and understand that money doesn’t grow on trees.