MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Braadbaart

Lieke Braadbaart

Online Writer
Published: 24/07/2018

For the first time in a decade, girls are receiving more pocket money than boys, averaging £7.09 per week compared to the boys' average of £6.91 – a 3% difference. This is according to the Halifax Pocket Money report, which found that there's been a drop in the amount boys are getting.

Overall, kids are now getting 3p less per week compared to last year, with an average across genders of £7.01. The majority of this money is still handed over in cash (84%), but 19% of parents are now paying it into their kids' own bank account, while 3% are using a pocket money app.

Piggy banks aren't just popular on our website, either, as 76% of children say they use one to save their pennies in, and even 60% of parents are using them for their own savings. Naturally, these coins would be more useful in a children's savings account or junior ISA, which is why it would be a good idea to make sure the account you choose not only has a competitive rate, but also the right access options.

Surprisingly, the findings show only 28% of parents make their kids do chores or housework to earn their pocket money. At the same time, 22% of parents say they give their children as much as they can afford to give, while 43% believe their kids don't actually need any money at all.

Giving your child some pocket money can help them to understand the value of money and saving, as 36% of parents believe, while also teaching them about interest. To help them not spend it all on sweets, however, it's important to think carefully about what the right place is for those funds.

By opening a children's savings account, grandparents and other loved ones can also directly contribute to your child's future. But if your child is older and has a part-time job, for instance, a junior ISA might be a better bet – and teenagers between the age of 16 and 18 even have both the junior ISA allowance and adult cash ISA allowance to use up.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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