The economic downturn has hit many wallets – but it has also hit children’s piggy
banks, according to a report from Tesco Bank. The UK’s pocket money budget
currently stands at around £40 million per week*, despite the fact that one in
four parents (24%) has reduced the amount of pocket money they give to their
children following the recession.
The report, entitled “Every Little Helpers” and the first in the Tesco Bank “Family
Matters” series, reveals that the majority of parents (71%) across the UK
expect help around the house from their children (aged 4-15 years old) in
return for pocket money. The most generous parents can be found in London,
giving children £7.81 per week in return for household chores, whilst the UK
average is £5.80.
Today’s mums and dads expect children to complete chores ranging from tidying their own
rooms to mowing the lawn in return for cash.
Top five pocket money earners
London £7.81
Swansea £6.68
Glasgow £6.46
Liverpool £6.38
Wolverhampton £6.26
Bottom five pocket money earners
Wrexham £2.50
Chelmsford £3.40
Worcester £3.50
Leeds £4.29
Bristol £4.33
Gender pay gap starts at an early age
The report also suggests that gender differences start early on in life. Boys are
more than twice as likely as girls to receive between £16 and £20 a week but
they are also more likely to spend their money within days. While girls are
streets ahead when it comes to saving, over a third of all children (38%)
regularly save-up their hard earned cash for something they really want.
Dr Elizabeth Kilbey, a leading child psychologist working closely with Tesco Bank
on the research, says: “It’s great to see so many parents across the country
rewarding and reinforcing children’s good behaviour with pocket money they can
then choose to spend or save. You can never start financial education early
enough in a child’s life and this approach is by far the best way to teach
children good habits.”
The majority of parents surveyed (65%) said they have had the financial equivalent
of the birds and bees conversation with their children; where money comes from
and what it’s for. “Financial knowledge is best learnt from a young age. While
parents can make it fun, money is not a joke and children should understand
this clearly. Parents work hard to provide things for the children. It’s
brilliant to see parents across the UK talking to their children about this,”
Dr Elizabeth Kilbey added.
Parents helping kids onto savings ladder
Parents are actively helping their children onto the savings ladder and 35% of children
under 16 now hold their own savings account. However, over half (54%) of the
children in the UK are traditionalists, preferring to keep their coins and notes stashed safely away in a piggy bank.
Tesco Bank’s “Every Little Helpers” report explores children’s spending and saving
habits and how they can be taught the value of money through something as simple
as regular pocket money.
David McCreadie, Banking Commercial Director at Tesco Bank, said: “We commissioned
this research to understand the changing dynamics of family spending and this
report has provided us with interesting findings. It’s great to see parents
talking to children about money and teaching them savings habits at an early
age through pocket money.”
The report is available now for parents to download free at https://mediacentre.metafaq.com/help/news/everylittlehelpers/.
