Pocket Money Drops and Girls Fall Behind Boys
Halifax 25th Anniversary Pocket Money Survey
The amount of weekly pocket money received by 8-15 year olds in 2012 has fallen to £5.98, a drop of 27p a week and £14.04 a year, with the gap between the amounts received by boys and girls also increasing.
Last year saw the average pocket money children received each week rise to £6.25 from a seven year low of £5.89 in 2010 and the gender gap was closing, with girls only earning 32 pence per week less than boys, compared to 40 pence the year before.
In 2012 however, girls are receiving an average of 37p a week less than boys (£5.79 to £6.16) which amounts to £19.24 less over a year.
The shift, revealed in the findings of Halifax’s 25th Anniversary Pocket Money Survey, reflects the strain on family finances many parents are currently facing.
Richard Fearon, Head of Halifax Savings says: “It is encouraging to see that over two thirds of children are still saving at least a quarter of the money they get despite the fact that amount of pocket money they receive has fallen. Pocket money is often the first opportunity children have to manage money and it gives them valuable insight into the benefits of both short and long term saving.”
Children in London receive the greatest average amount of weekly pocket money (£7.34). Children in the East Midlands have seen the amount that they receive fall the most (-21%) leaving them receiving £4.44 a week, less than any other region.
A Sweet Context
Whilst the average amount of pocket money received has increased by 529% in the last 25 years, the amount received has been declining since the 2005 peak of £8.37 per week. Pocket money levels experienced the highest level of growth at 105% between 1998 and 2000 from £1.76 to £3.60. However, pocket money levels also decreased in 1994, 1996, 1997, 2001, 2006, 2007, 2008 and 2010.
To add context to the value of what 8-15 year olds now receive, a comparison of the number of chocolate bars a week’s pocket money would buy now and in 1987 has been calculated. The comparison is based on the cost of a Cadbury Twirl, which launched in the same year as Halifax Pocket Money Survey.
In 1987, when a Twirl cost 22p, a week’s pocket money would have bought you five bars. A quarter of a century later, when the chocolate bar costs around 60p, children can now buy ten bars a week with their pocket money.
The right amount
The majority (54%) of 8-15 year olds get up to £6 in pocket money per week, with the amount received increasing with age. The average amount eight year olds receive is £4.20 which goes up to £5.78 by the age of 11 and £8.17 by the time they reach 15.
43% of children think that they should get more pocket money, although the majority (48%) thinks that they already get the right amount.
When comparing what they receive to their friends, whilst 32% have never talked about pocket money with their peers, 28% of children believe that they get the same amount as their friends and only 8% believe that they get less than their friends.