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A recent study by the Institute for Social and Economic Research, noticed that children who received the largest amount of pocket money which involved not having to do any jobs, were most likely to spend it all without saving any.The researchers linked children who rely on pocket money to be adults who would later rely on the state. Personally I think that is probably stretching the analogy and as we all know statistics can be manipulated.
Children certainly need to be educated about finances and managing their pocket money or allowance and being responsible for making financial decisions. But they also need time to play and study.
The compromise seems to be to give children some pocket money and encourage them to save for things they really want, perhaps using money they may have been given for birthdays or Christmas. (Children often refuse to spend their own money on something transitory when they would have been quite happy for a parent to supply the cash.) Plus they could also be paid to do jobs around the house according to their age and development.
However I think parents should take care that some jobs – for instance picking up their toys or making their beds – should be what they do without payment as part of living in a family.
There are regulations governing paid work for children outside the home plus parents should also consider the impact taking a part-time job can have on their son or daughter's education. Earning extra money from babysitting is a good alternative as they can usually study while the child they are looking after sleeps!