Child Pocket Money Compound Calculator
Pocket money invested monthly grows by age 18.
Calculate what children's pocket money invested monthly grows to by age 18. Enter amount and return to see pot at age 18.
What this tool does
This calculator models the growth of regular monthly pocket money contributions from a child's current age through to age 18. It applies compound growth at a specified annual return rate to show how consistent small deposits accumulate into a larger sum over time. The result represents the projected total value based on uninterrupted monthly contributions and the assumed return rate—it illustrates the mechanics of long-term saving rather than predicting actual outcomes. The monthly contribution amount and time horizon (years remaining until age 18) are the primary drivers of the final figure. A typical scenario might involve a child receiving monthly allowance that gets invested rather than spent immediately. The calculation does not account for inflation, taxation, changes to contribution amounts, or market volatility—it provides an educational illustration of how regular saving can compound over a childhood timeline.
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Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
20/month invested from age 5 to 18 at 7%: 5,475 pot. Starting earlier matters: age 5 to 18 gives 13 years of compounding, age 10 to 18 only 8 years — same 20/month yields 2,750. Teaching investing habits early compounds more than amount.
A worked example
Try the defaults: monthly amount of 20, current age of 5, annual return of 7%. The tool returns 5,066.62. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.
What moves the number most
The result responds to Monthly Amount, Current Age, and Annual Return. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.
The formula behind this
Future value of monthly annuity. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.
Spreading the cost
Starting earlier always costs less per month than starting late. That's the main lever this tool surfaces. Whatever the total, dividing it by the months until the event gives a monthly target that's easier to build into a budget.
What this doesn't capture
Life events generate side costs the figure doesn't include: time off work, lost income, travel for others, aftercare. Add 10–15% to the direct number as a buffer; the items you haven't thought of usually fill most of it.
What to calculate alongside this
One figure by itself is fragile. The children annual cost split calculator, the cost of raising a child calculator, and the funeral cost planning calculator cover adjacent ground — the answer to any one of them changes how you read the output from this tool.
Investing £20 monthly from age 5 at 7% annual return grows to 5,066.62 by age 18.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes the future value of a series of monthly pocket money deposits using the standard annuity formula. It applies a fixed annual return rate, compounded monthly, to model growth from the child's current age until age 18. The calculation assumes contributions are made at consistent monthly intervals, the return rate remains constant throughout the period, and no withdrawals occur. The model treats all deposits as equivalent in timing and does not account for inflation, taxation, fees, or changes in the contribution amount. Results represent a theoretical projection based on the stated return assumption and do not reflect actual market performance or the impact of irregular deposits.
References
Frequently Asked Questions
junior tax-advantaged account wrapper?
Why teach early?
Riskier returns?
Pocket money vs gift?
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