Pocket money on the up (so find the right account)

Category: Savings
20/03/2017

Getting pocket money is a rite of passage for many children, and it seems that the amount they're getting is on the rise – figures from Halifax show that average weekly pocket money has hit its highest level since 2007, and with the right children's savings account, it could grow even more.

Pocket money uplift

The research shows that children now receive an average of £7.04 in pocket money every week, the highest figure since 2007 (£8.01), and an increase of 7% from a year ago (£6.55). Despite this, 41% of children surveyed think they should be getting more, and 15% believe they receive the same or less than their parents did, even though the current pocket money average is 500% higher than the £1.13 people received in 1987.

Many will be hoping to receive plenty of new pound coins, too; the research found that 43% of respondents were initially unaware that the new 12-sided coin was being introduced next week (28 March), yet once told about it, excitement grew, with 69% wanting to receive it in their pocket money and 44% saying they'd put it straight in their piggy bank.

But could a dedicated children's savings account prove an even better home for pocket money?

Top children's savings accounts

A piggy bank may be the savings method of choice for many youngsters these days – 80% of children still use one to save – but that doesn't mean the cash should be kept there indefinitely. It could be put to far better use in a dedicated account, and with children's savings account rates often far higher than their adult counterparts, the benefits are even greater.

"Regardless of the amount of pocket money they receive, it's important for children to think about saving," said Giles Martin, head of Savings at Halifax. "Having somewhere to save pocket money, be it a piggy bank or savings account, is a helpful tool for adults teaching those lessons."

However, much like with an adult's savings account, it's important to choose the right deal. You want to get the best rate possible, paying close attention to things like access restrictions and any additional incentives, so spending time to compare children's savings accounts is vital.

We're here to help, so read on for an overview of the best children's savings accounts currently available, and see if you can help your child's pocket money go further.