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Kids prove recession proof as pocket money rises

Kids prove recession proof as pocket money rises

Category: Money

Updated: 18/08/2011
First Published: 18/08/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
While adults in the UK and further afield are struggling with cut budgets and inflation, kids are laughing all the way to the bank, with pocket money increasing year-on-year.

On average, children have seen their weekly allowance rise by 36p a week, research by Halifax has found.

The hike brings to an end a seven year drought where kids have had to endure falls in their weekly handouts, and equates to an extra £18.72 in their pockets each year.

More than eight in 10 children (83%) still receive pocket money each week, remaining unchanged from last year.

And they can expect to coin in £6.25 in 2011, up from £5.89 in 2010 – more than a 6% rise, meaning kids' pocket money is rising at a higher rate than inflation.

However, some kids may look back at brighter days as today's pocket money levels fall well short of the heady times of 2003, when children could expect a weekly sum of almost £8.40.

The gender gap has also continued to close with boys earning £6.41 per week and girls £6.09 per week - now only a 32p per week gap compared to 40p last year.

Girls aged 12 to 15 are only 11p behind their male counterparts, receiving £7.24 per week.

Not surprisingly, 12 to 15 year olds earn significantly more (£7.30) pocket money than eight to 11 year olds (£5.05) with 15 year olds topping the table with £8.38 per week.

The lowest pocket money income was £4.44 received by eight year olds.

There are not only gender and age differences in the amount of pocket money received, but region also plays a part. London tops the table, with kids in the capital raking in £7.63 per week, followed by Scotland at £6.89 and West Midlands at £6.49.

Children in the South West have the clearest reason for pay negotiations with parents, as they receive a UK low of £5.15 a week.

"It is encouraging to see the amount of pocket money children receive has increased from last year, this gives kids the chance to save their money as well as spend it," said Flavia Palacios Umana, head of savings products at Halifax.

"It is interesting to observe that despite the current economic climate the number of children who receive pocket money has remained the same.

"Teaching children important financial life lessons by using pocket money will quickly give them an understanding of basic financial issues and more important the consequences associated with making and spending money."

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