21st August 2015
Pocket money increases have outpaced wages in the past 28 years, with children now receiving £6.20 a week.
The latest research from Halifax shows average pocket money given to eight to 15 year olds has increased 448% since 1987 while their parents have received an increase in their income of just 193% – a net difference of 255%.
However, in the past year wages have risen 2% compared to a 2.4% fall in pocket money that means children now receive £6.20 a week.
Children saw the largest pocket money gains in 2003 with the average weekly spending money increasing 106% year-on-year. It continued to climb until 2005 when it peaked at an all-time high of £8.37 but then quickly dropped in the aftermath of the financial crisis.
The number of children expected to do chores for their pocket money has reduced in the past year, with 59% of children now expected to work for their money, down from 65% in 2014.
Bedroom tidying is the most common task, followed by washing up, cleaning, vacuuming, and one in four children get pocket money for doing their homework.
Girls are less likely to be asked to do chores for their pocket money than boys. In 2014 there was little difference between the sexes, with 66% of boys and 65% of girls expected to do work around the house but this year 64% of boys and 53% of girls are expected to work for their money.
Giles Martin, head of Halifax Savings, said: ‘Our research shows most parents are clearly very generous when it comes to how much pocket money they give their children, having given higher percentage increases, on average, than they’ve seen in their own pay packets for many years.
‘It’s surprising to see that in the last year, the number of parents who ask their children to do chores in return for their pocket money has decreased. Earning money can help children understand its value as well as giving them the opportunity to build strong savings habits from a young age.’