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New research has revealed that kids aged 4-14 received an average of £180.44 in pocket money over the last year, which was topped up by an additional £47 on average received in cash over the Christmas period. This means that kids had quite a nice chunk of change to spend, but how did they get so much, and what did they spend it on?
The survey, conducted by RoosterMoney among a sample of 11,000 kids aged 4-14 across the UK, found that, after Christmas, birthdays were the biggest source of funds, netting kids an average of £30.54. This was followed by spoils from the grandparents, which earned them an average of £12.44, while visiting aunts and uncles brought in £11.07.
Meanwhile the average weekly pocket money intake, £3.47 across all age groups, rose steadily as children got older, from £2.36 for four-year-olds to £5.41 for those who were 14. The chore that racked up the most cash was tidying one's room (£1.44), followed closely by washing dishes (£1.43) and hoovering (£1.36). Along the same lines, the number one most common household job was washing dishes, followed by room tidying and hoovering. Many parents also asked their kids to take out the bins (for an average of 91p), help with the recycling (83p), do laundry (75p) and set the table (56p).
By far the most lucrative activity that kids could take part in was selling their stuff, with getting rid of old toys, games and other items netting an average of £16.54. While 90% of parents who gave their kids regular pocket money felt that it positively impacted their understanding of the value of money, they were also keen to support their kids' learning, with an average of £4.44 given for getting good grades.
The subject that earned kids the most on their schoolwork was maths (£2.15), with the lowest earning subject being music practice (51p). Other earning activities included washing the car (£3.79), gardening (£3.52), being brave (£2.92), and even walking the dog (£1.76) and just being good (£1.72).
Most of the money parents gave their kids over the year was spent on apps (21% of spending), followed by toys (16%) and sweets (14%). Kids were pretty good at saving as well, though, especially if they had a goal in mind. With Lego still going strong as the most popular brand among kids, it's unsurprising that 12% of kids were willing to wait and save up for new Lego, while 11% managed to resist the urge to splurge to save up for a new phone and 10% had holiday money as their savings goal.
With so many small amounts being saved up throughout the year, a piggy bank may seem as good a place as any to store it until the next purchase, but parents could go further with teaching their kids about money and help them open a children's savings account. This would teach a child that money, when left alone in a bank account for a while, can accumulate interest – and some of the highest rates of interest currently available at that – so that they'd have more to spend in the long run.
If you're not sure how children's savings accounts work exactly, we have a guide that tells you just that. Then, why not sit down with your child and have a look at the best children's savings accounts currently available? Even if you don't find one you both like, it would still provide a valuable lesson on finances and the benefits of saving.
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