Children Feeling Short Changed as Pocket Money Falls
24 July 2014
- 8-15 year olds now receiving less pocket money than last year
Despite increasing news coverage of the recovering economy, it appears children are not experiencing any green shoots, as the amount of pocket money parents are giving their children has dropped in the past year.
The latest findings of Halifax’s Annual Pocket Money Survey indicates that the average amount of pocket money paid to children by their parent or guardian fell 2.4%, from a six-year high of £6.50 last year to £6.35 in 2014. Additionally, the number of children receiving weekly pocket money has also decreased marginally, down 2% to 82% since last year.
While almost half (48%) of the children surveyed feel they receive the ‘right amount’ of pocket money, two fifths (43%) think they should be getting more money, and a quarter (25%) believe their friends get more money.
Additional Key Findings:
- 13 year olds are the most likely to receive pocket money (90%)
- Parents or guardians are unsurprisingly the main source of pocket money for children (95%)
- But over a third of children (36%) are also receiving pocket money from their grandparents
Girls vs. Boys
A larger proportion of boys (84%) receive pocket money than girls (79%), getting, on average, 5% more money. Boys receive an average of £6.50 per week in pocket money, compared to just £6.15 for girls; meaning girls are missing out on almost £20 a year compared to their male peers.
Boys are also 5% more likely to want more pocket money than girls, with younger boys (aged between eight to 11 years old) the most likely to feel short changed (47%).
Pocket money for girls seems to be more closely linked to carrying out household chores. More girls than boys receive pocket money for helping around the house: for tidying the bedroom it is 45% and 39% respectively; for washing up 27% and 24%; and for cleaning it is 28% and 21% respectively.
Saving vs. spending
Around three in four children (72%) are saving a proportion of their pocket money: with one in two (49%) saving as much as half of the money they are given, and one in 10 (9%) saving all their pocket money.
A money box is still the favoured place to store any pocket money (42%), but two fifths (39%) keep their money in the bank.
Despite so many saving their money, only a third of children (32%) said they would save up for something expensive that they really want, whereas two fifths (39%) would prefer to ask for it as a present.
Richard Fearon, Head of Halifax Savings says: “Pocket money is a great tool to help young people learn the value of money, and to start the habits of saving and money management early on.
“Whilst the amount of pocket money children are getting has reduced slightly, it remains encouraging that many are satisfied with the money they receive, and that so many are choosing to save the money they are given.”
Six of the 11 regions saw average amounts of pocket money from parents or guardians fall in the past year, with the East Midlands (-21.2%) and East Anglia (-20.4%) seeing the biggest drops.
Londoners saw the largest increase in their pocket money over the past year, with an inflation topping 8% jump in weekly payments. This means they also receive the most pocket money, with a staggering average of £8.26 a week. This compares with just £5.15 in East Anglia, a difference of over £160 a year.