While money may be getting tight and costs continue to rise, pocket money is one aspect of the UK’s financial environment that has yet to feel the effects of the current economic climate. The epicentre of this pocket money phenomenon is Glasgow, where children receive the most money each week.
A new study by Engage Mutual of 3,000 UK parents shows that British parents are still giving their children pocket money despite tighter budgets, instability and increasing financial pressures.
At the top of the list, Glasgow children receive the most pocket money with an average of £4.87 per week, which works out to £253.24. Here, children often begin to receive pocket money at the age of four, giving them a piggy bank containing £3,545.36 by the age of 18.
The children of Southampton, on the other hand, fall at the other end of the scale with a weekly sum of £2.69 being dropped in their piggy banks each week. This equates to £139.88 in the first year, and £1,958.32 from the age of four to 18. This is £1,587 less than children living in Glasgow.
Engage Mutual’s poll revealed that 68 percent of parents give their children pocket money and they haven’t reduced how much they give each week even with the tougher financial times. Of those surveyed, only seven percent of parents said they’re giving their children less than last year.
On average, British parents give each child an average of £4.08 each week for pocket money.
Newcastle children come in second with a weekly sum of £4.67 or £242.84 per year, and Cardiff children come in third with £4.65 per week or £241.80 annually.
An estimated 67 percent of children need to work for the extra spending money doing chores and odd jobs around the house. These include vacuuming, dusting, making the bed, or keeping their rooms tidy.
Interestingly 65 percent of children save at least some of the pocket money they receive each week.
“Whether a small but frequent amount of their pocket money goes into their piggy banks or a child trust fund, it all helps children form positive thinking patterns around money management and saving for the future. This creates a great foundation for children while teaching them vital life skills such as budgeting and the work/reward concept,” explained Karl Elliott of Engage Mutual.