According to new research by Equifax, parents say on average they give their children weekly pocket money of £7.55 for 8 to 11 year-olds and £9.01 for 12 to 16 year-olds. With 98% of parents believing it’s important that children learn about personal finance at school, the credit information expert is highlighting how pocket money can be a good way to teach kids about the value of money.
According to the Equifax research of both children and parents, children appear to have a slightly different view to their parents on how much pocket money they get. On average those aged between 8 and 11 year-olds said they got £6.91 a week pocket money a difference of 64p and 12 to 16 year-olds said they got £7.67 a difference of £1.34
London parents are the most generous giving as much as £11.68 per week, although London children think it’s closer to £10.10. And parents in Wales seem to be the most prudent, giving on average just £4.36 per week, whereas Welsh children say its £4.
Introducing the concept of ‘earning’, the Equifax research also revealed the tasks set for children to earn their pocket money. 81% of Scottish parents use pocket money to incentivise kids to do their chores. In Wales nearly a quarter of parents (24%) encourage their children to do their homework to earn their pocket money.
Lisa Hardstaff, credit information expert at Equifax comments, “It’s interesting to see the amount of money parents give their children compared to how much children think they receive. It is also very encouraging to see that almost all of the parents surveyed think it’s important that children should learn about personal finance at school. Many families find it hard to talk about money, making it a subject they avoid dealing with, especially with their children. If parents do struggle to discuss financial matters with their kids, giving them pocket money can be a good way to start the conversation and teach them the value of money and how to save.
Of the children we surveyed, 76% said they regularly save their pocket money, going up to 82% among 15 year-olds. In contrast, 14 year-olds are mostly likely to spend it (68%). On the whole, boys save more with 78% hoarding their pocket money, compared to 74% of girls.
However, the figures suggest that this may be because boys are more likely to spend on big ticket items than girls. 60% of children will save their pocket money for a big purchase, such as a bike or tablet. Boys tend to save more for bigger purchases (64%) with just 55% of girls doing the same.
“Since September 2014, financial education has become part of the national curriculum in England, which is a great start. However, more could be done to introduce younger children to the idea of saving and spending. Certainly giving them pocket money is a great way to build financial confidence to manage money now and in the future,” concludes Lisa Hardstaff.