Kids are quids in as pocket money hits near decade high
The average weekly children’s allowance has risen to £6.55, a 6% increase in the last year, according to the annual Halifax Pocket Money survey.
The last time kids received as much was in 2007, and the number of children receiving pocket money has also increased by 3% in the last 12 months to four in five.
However, boys receive 12% more than girls and on average, eight year olds receive £5.06, while 15 year olds earn £7.85 per week.
The research showed that nine year olds receive the less on average at £4.68, while 14 year olds get the most – £8.03.
As the average has increased, children are proving more savvy with their money as four fifths now save at least some of the amount, up 9% from the last year.
Almost one in eight (12%) now save all of it, up from 10% last year. Almost a third (30%) save half of it, up from a quarter (25%) last year. For the previous two years more boys than girls were saving their pocket money but now there is no difference.
Children who live in London have by far the strongest savings habit, with well over nine in 10 (94%) saving some or all of their pocket money. In comparison, the savings culture in Yorkshire and Humberside is worst, with just 67% choosing to save.
A vast majority of parents encourage their children to save some of their pocket money, with almost one in 10 (9%) admitting they encourage their children to save it all.
Giles Martin, head of Halifax savings, said: “It’s reassuring to see the average weekly amount has reached a nine year high. Some parents are clearly not feeling the pinch in the same way as they have done in recent years, when weekly pocket money dipped as low as £5.89. It’s likely it’ll be a few more years until we reach the dizzy heights of £8.37 in 2005 though, when we saw the highest average pocket money since our records began.”
Martin added that pocket money is a “great training tool” in money management and a fantastic way of instilling a sense of the value of money from an early age.
He said: “Getting children to set aside even just a small amount each week can help them to develop a strong savings habit that with serve them well through to adulthood, so it’s particularly encouraging to hear that almost four in five children are now doing so.”