Parents should use pocket money to teach their children about the value of being able to budget.
This is the opinion of Simon Gibson, a director of financial firm Atkinson Bolton, who noted that if this cash is used wisely, then kids can develop a greater understanding of their monetary situation.
He told Citywire how he thinks pocket money should be split into four different pots to instil good habits.
It sees ten per cent given to charity and 30 per cent set aside for general spending, for something special and for long-term saving.
Mr Gibson thinks this system allows youngsters to appreciate that money has to be earned and respected, as they see it comes from somewhere and that people need to save up for expensive items.
The expert hopes that by making kids give a portion of their pocket money to charity they will realise that not everyone is as well off as they are.
Parenting journalist Liat Hughes Joshi advises mums and dads to only start giving their children cash when they turn six.