Children given twice as much pocket money as parents got
● Average child receives £6 a week – nearly £1,400 by the time they are 13
The average child is given £6 in pocket money by their parents each week, adding up to £312 a year – more than double what their parents were given at the same age, a report has claimed.
The Pocket Money Report highlights that the cost of being a parent is increasing, as children today receive more than two-and-a-half times the amount that their parents did at the same age. Compared with the average £6 a week that youngsters receive today, their parents were given just £2.30 – a considerable difference of £3.70 a week.
The average child starts to receive pocket money at the age of seven years and four months, the study from Comparethemarket.com found, meaning that, by the time they are 13, parents have spent an average of £1,872 on pocket money per child.
The report, which surveyed 2,000 people, said that, if children start receving pocket money at the age of seven, they could have earned about £936 by the time they are 10 years old.
In comparison, their parents’ yearly “income” from their parents would have been about £119, compared with the £312 that children now benefit from.
The report said: “Pocket money is a great way to teach children about the value of money and managing finances. The subject of pocket money can be a tricky one: as the nation’s purse strings are tightening, children’s expectations are growing.”
The firm pointed out what the vast majority of parents already know: that the financial burden on them does not end when a child leaves home.
It also said youngsters should start learning about financial management as early as possible. Nine in 10 parents surveyed as part of the Pocket Money Report said financial education should begin in primary school.
John Crossley, head of money at comparethemarket.com, said: “Giving your child pocket money can be a great way to teach them to be financially responsible from an early age.
“Learning to budget and manage savings can help children develop invaluable money management skills and prepare them for dealing with household finances in later life.” Although pocket money has traditionally been paid in cash, apps have recently been introduced to let parents transfer money to their offspring digitally, allowing them to keep track of their spending online.
A study published recently by comparethemarket. com found that half of 17to 24-year-old drivers have received financial support from their parents to help them run their car over the last 12 months. Last year alone, parents contributed an average of £485 to their child’s car running costs.
Banks predict that, by 2028, adults will use notes and coins just once out of every 10 times they buy something.