In the Czech Republic, nearly three-quarters of parents provide some form of pocket money to their children. 58 percent of households with school-age kids choose a regular monthly allowance. The majority of parents, about 60 percent, allocate up to 500 Czech Crowns per child per month as pocket money, as revealed by the August survey for the investment platform Portu.
A fifth of parents contribute to their children, ranging from 500 to 1000 Czech Crowns monthly. More than 2000 Czech Crowns in pocket money are provided by 11 percent of respondents, often seen in families with high school and university students.
Pocket money is more prevalent in families where at least one child is in primary or higher education. The remaining 27 percent of respondents do not provide pocket money, which is more common in families with preschool-aged children.
“Every Monday, we send 200 Czech Crowns via Revolut to our two older daughters, who are high school students. Considering the recent price hikes, we’re considering increasing their pocket money by at least 50 Czech Crowns,” said Michaela from Řevnice, a 39-year-old parent. “Through the app, we can track how the girls spend it,” she added.
Fostering Financial Literacy
Approximately a quarter of parents meet their children’s needs by providing money according to their requirements, and 16 percent of respondents combine both forms. This means they offer regular monthly pocket money for personal spending while addressing some of their demands as needed.
“If we want children to understand the value of money and learn to manage a limited budget, regular pocket money is undoubtedly the best approach. For younger children, a piggy bank may work well, and starting from the second grade, kids can have their bank account and card. Children may see it as a salary they must manage just like parents until the next ‘payday,'” stated Portu analyst Marek Pokorný.
Usually, 26 percent of parents give their children 100 to 300 Czech Crowns monthly. Pocket money ranging from 300 to 500 Czech Crowns is given by 25 percent of parents, and 8 percent provide less than 100 Czech Crowns.
Higher pocket money is 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. In the case of families with university students, as many as 60 percent provide pocket money exceeding 2000 Czech Crowns. Studying at middle and high schools often involves living away from home, with costs for accommodation, tuition, food, and study materials reaching thousands of Czech Crowns per month, added Portu’s marketing specialist Tereza Suntychová.
According to a June survey by NMS Market Research for Raiffeisenbank, children typically receive pocket money in cash, usually around 300 Czech Crowns monthly.