Pocket money and savings

Pocket money

We expect all children over 5 to be given pocket money from the maintenance payments you receive. Children under 5 years old can have occasional treats instead of pocket money.

Having pocket money gives the child a sense of independence and a degree of choice in making decisions about how the money is spent. It helps children understand the value of money and is the start of learning budgeting skills.

Depending on their age, children should be given:

You should give each child pocket money from the first week they come into your care and give them support using it.

You should also provide toiletries, clothing and a mobile phone top up for older children from their maintenance payments.

If your foster child will be spending time away from your home (for example in custody or in hospital) please speak to your fostering social worker about how payments should work during the time they are away.

Savings

All children are entitled to £10 per week saved on their behalf from their 14th week of being in care. These savings are to support their transition to independence and should not be available to the young person until they reach 18.

Children are expected to have 2 accounts:

• A bank account in the child's name where they can save any money they get (pocket money, birthday or Christmas money) to learn good savings habits and save towards extra things they would like. The child should have access to this money themselves throughout their time in care unless there are safeguarding concerns.
• A Child Trust Fund or Junior ISA where the child can build long-term tax-free savings to help with the expenses of becoming independent such as setting up their own home. To find out more, read our Child Trust Fund and Junior ISA fact sheet (PDF, 168.7 KB).

If you are unable to set up accounts for your child, please speak to your fostering social worker.

During the child's first 13 weeks in care, you will receive the full maintenance payment (which includes a £10 per week 'settling in' fee) but you will not be expected to save any money.

You must set up the accounts within the first 14 weeks and provide the child's social worker with the details to add to their file.

From the 14th week, the 'settling in' payments will stop and £10 will be paid into the child's Child Trust Fund or Junior ISA each week instead.