When it comes to raising kids, pocket money can be a touchy subject. What works for some families doesn’t always work for others. In some cases, you may feel like offering money in return for housework or homework done on time. It’s something which can really differ from household to household. However, we can all agree that our children do deserve a treat every now and again.
How much pocket money should you give your child? On average, a child in the UK will receive between £4.25 and £4.38 per week. This is based on data sourced through RoosterMoney, who have looked closely at what parents are spending on their children across 2019. Over 18,000 service users were polled, meaning that their statistics do give a nice cross-section of what parents are paying out.
Interestingly, the money kids receive from their parents has increased a little from quarter to quarter. In the third quarter of the year, children received an average of £4.38 from parents, in comparison to £4.25 at the start of the year. Even more curious is the fact that the consumer confidence index has sunk from -8% to -9% during this time.
It’s interesting to see that, despite uncertainty regarding Brexit making things tighter for a lot of people and businesses, kids continue to see their rewards ramped up. Does this mean that we’re giving our kids too much cash? Maybe not. Maybe parents are less worried about the financial status of the UK than many presume – after all, you can’t take it with you!
How Are Kids Earning Pocket Money?
RoosterMoney states that British kids are most likely to earn their pocket money through household chores. It’s a good sign that children are still earning their keep!
The most popular pocket money earner is gardening. Statistics show that children earn an average of £2.97 to give the lawn a good mow-over. Meanwhile, an average £2.34 is spent on kids cleaning our cars. The third most popular pocket money driver was, believe it or not – cleaning the bathroom. Children earn an average of £1.04 per week for tackling limescale and grease.
It’s curious to see how children are earning their money. These jobs are common chores for adults, however, it’s interesting that gardening comes up so regularly.
Is There a Gender Gap for Pocket Money?
Halifax published slightly different data earlier this year which suggests that the average pocket money given to children is slightly more. However, one of the most interesting takeaways from Halifax’s study is the fact that girls appear to be earning slightly more than boys. Although the difference is negligible an 18p sway.
This does make for interesting reading as there are ongoing concerns with regard to how much women are paid across various industries compared to men. It seems that, at least at home, things are a little more equal.
Other information derived by Halifax suggests that children in Greater London receive much more pocket money per week than those living in Yorkshire and the South East. This is to be expected, as a result of the higher cost of living close to the city.
Are UK Children Saving Money?
This is a crucial question. Even many adults don’t save as much as they should – but how many British kids are making sure to put away the pennies they earn?
The statistics from RoosterMoney suggest that kids are saving around 27% of their weekly pocket money. This is thought to be higher than of previous years, which does show that we are moving in a more positive direction. However, it’s clear that our kids need to be thinking more and more about the positives of saving. It’s a life skill which should really be learned as soon as possible. Saving is something which is difficult to do at times, however, it’s a necessity should the worst-case scenarios ever happen.
27% of a year’s pocket money isn’t bad at all. But is this enough for kids to save up for what they want?
What Do Kids Want to Save For?
Parents aren’t always able to splash the cash when it comes to fancy gadgets, gizmos and gifts. The occasional present or two is a great idea – but children should ideally learn that saving their own money is going to be the fastest way to get hold of the things they really want.
The top three things kids are saving for, according to survey results, are Lego, smartphones, and Nintendo Switch consoles. There aren’t many surprises here, but we need to consider whether or not kids can actually afford these items!
Lego costs can vary. There are millions of different sets out there. Therefore, children could well be able to buy a few small bits and pieces with a year’s savings. Smartphones, however, can cost hundreds of pounds. Consider the iPhone 11, for example, which retails at around £1,000, depending on where you look.
The Nintendo Switch, meanwhile, has held firm at around £250-£300, though this depends on the packages they are saving for. It also depends on whether or not they are buying new or second-hand. It’s worth bearing in mind that games like Mario Kart 8 Deluxe retail for £45-£60 on average. It’s a lot to pay out for, when the highest average pocket money per year is just under £228. Kids are, on average, only saving around £62 of this.
How Much Money Do Children Receive for Christmas?
However, we do also need to consider how much money families are giving kids as Christmas gifts. We haven’t even considered birthday presents! Christmas money for British children appears to roll in at around £44 per family. Added to the £62 average savings above, this means children have around £100+ to play with if they save up to the end of the year. This could be so much more! But the answer isn’t necessarily that we give our children more money, but that we make sure they know what to save, and when.
Conclusively, where does this leave us? How much pocket money should you give your child? Ultimately, the answer is entirely down to you. These average figures are just that – averages. They don’t take into account variables in terms of income per household, children’s tastes, or otherwise. You should also be careful not to be swayed too much by what works for other families – as these rates may not work for you.
What you can do is encourage your kids to save as much as possible for what they want. With Brexit still looming large, it makes sense to instil a sense of financial responsibility in your children as early as possible. How you do this – of course – is up to you. But learning the value of money is something which will put them in good stead for later life.