Pocket money is decreasing - sign of the times?

By Lucy Bower

The Halifax Pocket Money Survey has been examining the spending habits of eight to 15 year olds since 1987. This year, the average pocket money has dropped by 27p to £5.98 a week, from £6.25 a week last year.

However, in 2010, it reached a seven-year low of £5.89, so this year is still an improvement on that.

It could be a sign of the times, as the recession eats into everyone's money, but many parents feel that giving their kids pocket money is a good way to help them learn about savings and managing their money well.

However, fewer kids get pocket money these days - 83% did last year, but only 77% do at the moment.

There seems to be a gender gap too, with boys receiving more pocket money on average than girls their age. Girls get 37p a week less than boys a week on average (£5.79 compared with £6.16). That's a difference of £19.24 over a year.

So how do kids use their pocket money? Well 67% save at least a quarter of it and 40% keep it in a bank or building society account. Funnily enough, nearly half (43%) of eight to 15 years olds think they should get more.

So pocket money may have fallen since the recession, but are kids better off than they used to be before that?

Well, in 1987, the average amount of pocket money could have bought five chocolate bars (Twirls to be precise). These days, the average pocket money will buy six - so in some ways kids really have never had it so good!

Image © iStockPhotos / Joanne Green

Tags: money, children, pocket money, Halifax

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