With inflation is on the way up and VAT is set to rise to 20% next year, even children are feeling the pinch.
New research from Halifax shows that pocket money for kids has fallen to a seven year low, with children receiving an average of £5.89 per week, the first time the figure has fallen below £6.00 since 2003.
It seems a change of government and the cuts announced in the Emergency Budget have tightened purse-strings all over the country, with kids receiving 5.9% less than they did in 2009.
Pocket money gender gap
Equality has still not been achieved in the pocket money market. Halifax’s survey shows that boys receive 38 pence more a week than girls, getting an average of £6.08 per week while girls receive an average of £5.70 per week.
The research also suggests that pocket money is increasing in line with age. Kids aged between 8 and 11 receive an average of £4.57 while those aged between 12 and 15 are receiving £7.02.
Interestingly, 77% of children surveyed by Halifax said that they were interested in learning more about savings yet only 23% popped half of their pocket money away for a rainy day. Only 9% saved all their pocket money, with an overwhelming majority deciding to spend it all in one go.
Halifax found that the average amount of pocket money saved by kids was 37%, which equated to £2.15 per week.
Ways to save for children
If you want your children to be engaged in savings and are thinking about putting some money away for the future, read our seven smart ways to save for your kids.
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