You are here: Home - Saving & Banking - News -

Kids hit hardest by inflation

0
Written by:
26/10/2012
Kids are being hit hard by the rate of inflation as pocket money struggles to keep up with the rising costs of goods and services most commonly used by children.
Kids hit hardest by inflation

According to Santander, ‘Kidflation’ has been hitting children in the pocket, as goods and services most commonly bought by children has risen at a rate two-thirds (68 per cent) faster than inflation (RPI) over the past year.

The research was an analysis of rate of inflation on goods and services typically purchased by the UK’s 10-16 year-olds and compared it with the rate of inflation for all goods and services.

It discovered that ‘kidflation’ drove up the price of goods routinely bought by children by 4.7% between June 2011 and June 2012, compared to just 2.8% for products and services in general, meaning children continue to be significantly worse-affected by the rising cost of living.

Alan Mathewson, CEO of Santander Cards, said: “Everyone tends to focus on the impact of inflation on the adult world but often we overlook the effect on children.

“The costs of everyday purchases made by children have been rising at a rate that significantly exceeds that of inflation in general, and children are also heavily affected by the reduced amount of money being spent on them by their parents because of difficult financial circumstances.”

Kidflation has now risen 19.7% in the past four years compared to just 11.7% for products and services in general.

In the past year, children have seen increases in bus fares (5.6%), cost of entertainment (5.0%), and increases in sweets and chocolates (4.3%) and clothing (3.5%).

On top of increases in goods and services that children enjoy, kids are also facing cutbacks on the amount being spent on them through shopping trips and family outings.

According to Santander, more than a third of parents said they reduced their children’s pocket money in the past year – up from 23% in 2011 – due to difficult financial circumstances, half of whom (18%) are now making them earn it by carrying out chores in the home, up from 13% in 2011.

The effect of reduced pocket money also means less going into savings, with fewer than two in 10 parents (17%) saying their children put money in the piggy bank at home, and fewer than one in 10 (9%) say their children put pocket money in a savings account.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2220216-fraudweek3
Regulator calls for tougher financial crime sentences

Martin Wheatley has called for tougher sentencing powers for white-collar criminals to force them to cut deals and expose other...

Close