Whenever youngsters head off for university, they need to make sure they understand the value of money.
They will face various financial hurdles as they juggle paying rent, fees and household bills on their own for the first time.
Because of this, Simon Walsh, a spokesman for Family Lives, told the Independent that kids will have a "good foundation for their future habits" if parents teach them about finances.
"Their observations of how you spend, save, budget and donate to charities can shape early views about money management," he added.
This highlights how important it is for mums and dads to instil good habits in their offspring and one way to accomplish this is to use pocket money effectively.
Pritee Chohan, Money for Life Programme volunteer and a branch manager for Halifax, told the newspaper children should have the different concepts of saving and budgeting explained to them and then they can be applied to holidays or buying gifts.
If this is done, then youngsters should be in a position to look after their own money.