“2024 Pocket Money Report: Where Kids are Spending and How Much They’re Getting”

May 26, 2024 | by magnews24.com

According to recent data, pocket money is on the decline among children in the United Kingdom. However, despite this trend, kids are finding new and innovative ways to earn money for their everyday needs. The NatWest pocket money index, which analyzes transactions from 308,000 children using the Rooster app, reveals that only 30% of families now provide regular pocket money to their children, a decrease of 2% from previous years. On average, children receive £3.78 per week, a decrease of 10p from last year. In fact, pocket money now accounts for just 14% of children’s income.

Instead, children are turning to alternative sources of income, such as one-off chores and entrepreneurship. The data shows that the average child earns £479.96 per year (£9.23 per week) from these activities. This includes charging for chores and increasing earnings from side hustles. For example, car cleaning now earns an average of £3.25, an increase of 32% from last year. Paper round earnings have also increased by 2% to £23.10 per week. However, the data also reveals a decline in earnings from reselling, which is down 15% to £22.62 per week.

The data also sheds light on where children are spending their money. The top three spending destinations for children are Amazon, Tesco, and McDonald’s, followed by Primark, Co-op, PlayStation, Xbox, Sainsbury’s, and Asda. Interestingly, the top 10 list also includes fashion brand Shein, replacing Apple from the previous year.

NatWest Rooster Money’s chief executive and founder, Will Carmichael, notes that “kids’ money is completely changing shape.” He adds, “Kids are increasingly complementing [pocket money] in other, more sophisticated ways.” He believes that this move towards independence and maturity in earning bodes well for their future financial confidence.

The data also shows that children are becoming more responsible with their money, with a saving rate of 9.5%, close to that of adults (10.2%). The top three incentives for saving are for gaming, holidays, and future expenses.

The question of how much pocket money to give and what to expect in return is a common one among parents. Parenting specialist Kirsty Ketley from Surrey suggests starting to give pocket money as early as age four, stating that it is an essential life skill to learn how to manage money. Presenter and children’s author Konnie Huq also supports the idea of regular pocket money, as it teaches children responsibility and financial literacy.

However, not all parents agree with this approach. Sharon Olivero-Chapman, chief executive and founder of Harrienna Health, believes that giving a regular pocket money figure sends the wrong message to children. Instead, she gives her daughter, Harriet, 13, money for completing specific chores. Harriet has also taken on an entrepreneurial venture, running her own Etsy store and earning nearly £1,000 so far.

The article also features stories from various families, including the Dursuns from Scotland, the Shaws from London, the Regulskis from Wales, the Moores from West Midlands, the Scotts from Wiltshire, and the Joneses from West Midlands. Each family has their own unique approach to pocket money and teaching their children financial responsibility.

In conclusion, the data and personal stories reveal that pocket money is on the decline among children in the UK. However, children are finding new ways to earn money, and parents have varying opinions on how much to give and in return for what. Regardless of the approach, teaching children about money management and responsibility is crucial, and pocket money can be a valuable tool in this process.

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