Pocket Money Trends in 2024: Where Kids are Spending and How Much They’re Earning
Pocket money is a topic that has been debated among parents for generations. How much is too much? Should it be tied to chores or given freely? And most importantly, where are kids spending it? New data from the Natwest pocket money index sheds light on these questions and more.
According to the data, pocket money is on the decline, with only 30% of families now paying it as part of a regular routine. The average amount children receive per week is £3.78, down 10p from last year. However, children are finding new ways to earn money, with a typical child netting £479.96 a year for one-off chores or entrepreneurship.
The data also reveals where kids are spending their hard-earned cash. Amazon tops the list, followed by Tesco and McDonald’s. Other popular spending spots include Primark, Co-op, PlayStation, Xbox, Sainsbury’s, and Asda. Interestingly, Apple has been replaced by fashion brand Shein in the top 10.
One of the most intriguing findings from the data is the saving habits of children. With a saving rate of 9.5%, kids are not far off the adult average of 10.2%. Gaming, holidays, and the future are the top three saving incentives for children.
Parents have varying opinions on the topic of pocket money. Some, like Kirsty Ketley and Konnie Huq, believe that a regular allowance is a good way to teach children financial literacy and responsibility. Others, like Sharon Olivero-Chapman, think that pocket money gives children the wrong association with money and prefer to tie earnings to chores or entrepreneurial endeavors.
The stories of families like the Dursuns, Shaws, Regulskis, Moores, Scotts, and Joneses provide insight into the different approaches parents take when it comes to pocket money. From daily transfers into a Starling account to setting activities for children to complete in exchange for money, each family has a unique way of teaching their children about money management.
In conclusion, pocket money is a valuable tool for teaching children about financial responsibility and independence. Whether tied to chores or given freely, the key is to instill good money habits early on. With kids finding new ways to earn money and spending it wisely, the future looks bright for financially confident individuals.
