May 23, 2023,

Children & Pocket Money – What’s Right for Your Family?

Bondora Go & Grow

Editorial team

Table of contents

Financial literacy is a critical skill that parents must instill in their children, as it’s fundamental to navigating the complexities of modern life. But which approach is suitable for your children? Parents can teach their children about money by providing them with pocket money, either in exchange for chores or without any strings attached. Some parents opt not to provide any pocket money at all. What option is the most suitable for your family? Let’s review.

Children & pocket money – what's suitable for your family? — *Children & pocket money – what’s suitable for your family?*

Pocket Money in Exchange for Chores

Main benefits:

Teaches children the value of hard work and earning money
Encourages children to take on more responsibility
Helps children develop time-management skills

Providing children with pocket money is a popular approach among many parents. In Germany, 89% of parents give their children a small allowance on a monthly (53%) or weekly (36%) basis.

Most parents don’t ask their children to work for it, but exchanging it for chores helps teach children the value of hard work and earning money. It encourages them to take on more responsibility around the house and helps them develop time-management skills.

When children earn pocket money for completing tasks, they learn that money is a result of hard work, and this can instill a strong work ethic that can benefit them later in life.

*Giving pocket money for chores can help children make the connection between hard work and money.*

Pocket Money with No Chores Required

Main benefits:

Doesn’t set unrealistic expectations about chores
Assists in developing budgeting skills in children
Motivates children to make independent financial decisions

Some parents reject the idea of paying their children for doing chores, believing that kids should contribute to the household regardless of reward.

This is because they want their children to understand that, as adults, we don’t get paid for doing household chores and that it sets unrealistic expectations for later in life. Children should grow up knowing that they need to ‘pull their weight’ wherever they live and do their part in maintaining the house.

While this approach doesn’t teach children that money has to be earned, it does improve money management skills and contributes to financial education. Having a set amount of money motivates children to think about their expenses wisely and even set money aside or invest it.

*Some parents want kids to understand the value of contributing to the home regardless of reward.*

No Pocket Money Whatsoever

Main benefits:

Encourages children to find creative ways to earn money
Teaches children to be responsible with the resources available to them
Helps children develop a strong work ethic

Some parents choose not to give any pocket money to their children at all. While this may seem harsh, it can effectively teach children about responsibility and the value of hard work.

Without the option of pocket money, children are encouraged to find creative ways to earn money and become more resourceful. They learn to be responsible with their available resources and develop a strong work ethic that can benefit them later in life.

Send this article to a parent you feel can benefit from this.

Bondora Go & Grow

Editorial team

At Go & Grow, our Editorial Team combines years of fintech experience with a passion for financial education. We’re here to share trustworthy insights, platform updates, and easy-to-understand investment tips for everyone.

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Frequently Asked Questions

How is Bondora regulated?
Bondora Capital’s business model is unique, with no direct precedents in the market. As such, there is currently no specific regulatory license that directly applies to our Go & Grow product. However, we work proactively with regulators across the EU to ensure full compliance with all applicable local laws and regulatory frameworks.

To support this, we regularly publish financial updates, audited annual reports, and disclosures, reinforcing our commitment to transparency and investor trust.

At the same time, Bondora Capital is subject to all relevant general regulations, including (but not limited to) the Estonian Consumer Protection Act, the Law of Obligations Act, the Commercial Code, the Accounting Act, the Competition Act, and the General Data Protection Regulation (GDPR).

Additionally, Bondora AS, a member of the Bondora Group, operates as a Licensed Credit Provider under the supervision of the Estonian Financial Supervision and Resolution Authority. In Finland, we operate through a licensed branch regulated by the Finnish Financial Supervisory Authority. We also hold an operating license in Latvia, supervised by Latvijas Banka, and have recently received regulatory approvals to operate in both Denmark and Lithuania.
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Bondora issues unsecured loans, meaning credit customers are not required to provide collateral. This approach allows us to offer a faster, simpler, and more accessible lending experience.

Risk is mitigated through multiple layers of protection. Our underwriting process is powered by predictive, data-driven models, trained on deep datasets collected over 17 years. Each borrower is carefully evaluated using a wide range of creditworthiness indicators before any loan is issued.

With Go & Grow, your investment is automatically diversified across hundreds of thousands of loans in multiple countries. This significantly reduces individual borrower risk and adds a layer of protection against regional or geopolitical events.

In the rare event of non-payment, we follow a structured recovery process, working with professional debt collection agencies and, when needed, escalating cases through local legal channels to pursue repayment.
What happens when a borrower doesn't repay?
At Bondora, we do a lot to prevent repayment issues before they happen. Our advanced data models carefully assess each borrower’s creditworthiness, using historical data and predictive analytics to minimize the likelihood of default from the start.

If a payment is delayed, we act quickly but thoughtfully. From the first day of the delay, we reach out to the customer via email, SMS, and automated calls to remind them of their delayed payment and offer flexible options to get back on track. The aim is to find a solution together, whether that means a new payment date or a short-term adjustment.

If the situation doesn’t resolve, we may involve our internal teams or trusted partners to continue the dialogue and explore further options. In some cases, if communication is unsuccessful, the matter may be escalated to the local legal system in line with standard procedures. Legal steps are always a last resort, and the goal is to find the best possible outcome for everyone involved.

Throughout this process, our focus remains on recovering outstanding amounts responsibly and respectfully while protecting investors’ interests.

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What are temporary partial payouts?
Under normal conditions, your Go & Grow withdrawal is paid in full with a single transaction near-instantly. However, in rare and extraordinary circumstances, partial payouts may be activated temporarily. This means your withdrawal will be split into smaller, daily payments until the full amount has been delivered. Only one €1 withdrawal fee applies once you’ve received the full amount.

This protective feature was built into Go & Grow from the start to help maintain stability and safeguard investor returns, so you can stay on track and stay earning, even when the world feels uncertain.

In Bondora’s 17-year history, partial payouts have only been activated once.

While we aim to keep Go & Grow fully liquid, this feature ensures that when conditions require it, your investments remain protected and continue to work for you.
What happens to my investments if Bondora goes bankrupt?
Your money is protected. Even in the highly unlikely event that Bondora Capital becomes insolvent, your investments remain yours. Investors legally own the loan claims, not Bondora Capital.

This means Bondora’s financial situation does not affect the legal ownership of those claims—they continue to belong to the investors. The claims are not part of Bondora’s bankruptcy estate.

Risks related to Bondora as a company are separate from the risks associated with your investment portfolio. Simply put, if Bondora disappears, your investment doesn’t.