Everything you need to know about sack money

Pocket money has a long tradition in Switzerland and is familiar to practically every family, even if habits and needs, social and cultural circumstances are different. The umbrella organisation Budget Counselling Switzerland generally recommends paying children pocket money. Ultimately, the parents decide whether, how much and when the children receive pocket money.

The topic seems simple, but in practice it raises a number of questions. To maximise the learning effect, it is worth following common rules and tips based on many years of experience in dealing with children and pocket money. Three children from different families tell us what this looks like in practice.

When is the right time for pocket money?

Sack money doesn't make sense too early. Young children have usually come into contact with money, for example when playing with foreign coins or play money. However, they are not yet able to grasp the value of money and they do not have the necessary time perception for the concept of saving.

The first bag money is usually spent on sweets.

Kindergarten children can be slowly sensitised to the topic. This can be done while shopping if they are allowed to pay for something themselves at the till. However, traditional pocket money only makes sense in primary school. At this age, you can talk to children about money, explain the value of money and what saving means. They can already do the maths and define and achieve their first savings goals.

How much pocket money should it be?

There are standardised recommendations on the internet for determining this. It starts with one franc per week in the first class (at the age of six to seven). With each subsequent school year, the amount increases by one franc per week until the fifth grade, when a monthly amount is recommended. The table below shows the usual recommendation for the amount of pocket money.

Are parents allowed to dictate what the children spend their pocket money on?

The law clearly defines that pocket money, as well as money earned through secondary employment, should be freely available to children according to §323 of the Swiss Civil Code. In plain language, this means that although we are allowed to give our children pocket money, we are not allowed to tell them what to do with it. However, a little help in handling the money is advisable.

Something most parents have to accept: The first bag money is usually spent on sweets. This has less to do with the parents' attitude to food than with the great temptation of places like the kiosk and sweets that are affordable for the children.

Sack money should be paid regularly and without being asked. It is not a bonus for good grades or good behaviour.

This was also the case for Rosa. She is now ten years old and received pocket money for the first time when she was seven, when she started first grade. Her parents both work part-time, share the childcare and are passionate about cooking. Although Rosa sometimes has chocolate and Nutella at home, she felt magically drawn to the kiosk.

She remembers: «I got one franc a week. Always on Sunday. I went to the kiosk with it on Monday and spent it all on sweets straight away. I had to save up for a fortnight to buy a bag of gummy bears. It took me too long to buy something proper.» Today she saves her pocket money. It makes her happy when she has saved so much money at the end of the month that she can afford something casual from the stationery shop.

The situation was slightly different for Jonas, but the end result was the same. Jonas is eleven years old and is in the fifth grade. His parents both work full-time and only come home in the evening, so Jonas attends after-school care. Jonas says he doesn't always like the food at the after-school club, so he often buys biscuits and sweets from the shop. Today, Jonas receives 25 francs in pocket money at the end of the month.

«Since I've been getting Nötli as pocket money, I feel more like saving. You spend the coins faster,» he says. He doesn't actually like sweets too much and prefers to save up for a skateboard. «I've been saving half of my pocket money for ten months now. Together with the birthday money, I'll get the amount together on my birthday.» Jonas is visibly proud of the savings plan he has worked out with his parents. As a sponsorship, his parents will add an extra 20 francs when he reaches the agreed savings target.

Sack money rules

The pocket money should be paid regularly and without being asked. Only if the child can rely on the payment of pocket money will they learn to use it responsibly in the long term. The pocket money is not a bonus for good grades or good behaviour. And under no circumstances should it be cancelled as a punishment. Once parents have decided to give bag money, it is sacrosanct.

Advances and loans should also be avoided. The same applies to compensating for financial bottlenecks. This can occasionally lead to loud scenes. John, who lives with his single mum, gives us an example of this. He is eleven years old, is in the 6th grade and can sometimes really snap. John receives 30 francs a month in pocket money, which he usually spends in the first two weeks. This can lead to shortages.

«I wanted to go for a bubble tea with my colleagues, but I didn't have any money. My mum didn't want to give me an advance. I thought that was so mean that I shouted at her. But she stood firm,» says John, who has since forgiven his mum. He was allowed to clean her car and earned the money he needed. It was hard, but he has learnt a lot, he says in hindsight: «Today I'm better at dividing my pocket money.»

In the meantime, John has become a valuable member of the household and earns some extra money by gardening and ironing shirts. However, his smaller tasks, such as setting the table or putting away the dishwasher, remain unpaid and are his contribution to the household.