High street bank reveals just how MUCH parents spend on pocket money – but says it's good for our kids
Amber Middleton
Content writerHalifax bank has revealed how much parents are spending on pocket money alone – and it's higher than you might think
A high street bank has revealed how much money parents spend on pocket money.
But with the high costs, come vital life lessons for kids, experts said.
Halifax, which is part of the Lloyds Banking Group, conducted research into kids' pocket money, speaking to 1,000 kids aged 8-15 and 588 parents of kids the same age.
The data revealed that almost all parents (89%) give their kids pocket money.
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The total revealed
The research found that parents on average spend £260 a year on pocket money alone – per child – with most kids getting £5 per week to spend on toys, sweets, games and so on.
In the report, Halifax found that over half (55%) of parents haven’t made any changes to the amount of pocket money they regularly give their children over the last couple of years, despite the soaring cost of bills amid the cost of living crisis.
But while £260 spent on sweets might feel like a lot, there are some benefits, with finance experts agreeing that giving pocket money can be a great way to help kids learn to be good with money.
Earning their keep
The research found that just over half of children have to do chores to earn their keep which can help them learn about the value of money.
Chores range from gardening to cleaning the toilet – which unsurprisingly was voted the least favourite job by kids, followed closely by cleaning their rooms.
And the report found that nearly half (48%) of the children interviewed think parents should keep giving them an allowance until they are employed.
'Great way to learn about budgeting'
In the report, Andy Bickers, Savings Director, Halifax, said: 'Pocket Money can be a great way for children to learn about saving, budgeting and spending responsibly.
'Talking openly with your children about money and giving them a set amount for helping around the home can encourage them to save up for whatever’s on their wish list and build healthy money habits.'
According to the report, most children spend their money using cash (57%), despite debit cards being the most popular method of payment among UK parents, according to UK Finance data.
This is followed by card payments (37%).
Lining their own pockets
While not everyone can afford to fork out hundreds on spending money for the kids, some kids have used their entrepreneurial skills to make their own money.
In the report, a mum explained that her 13-year-old's skills allowed him to save up £300 towards a Playstation 5.
She said: 'Alongside saving his pocket money he is now selling his old trainers, clothes and toys on marketplace websites and even has a spreadsheet tracking how much he has built up – saving hard towards his dream Playstation 5.'
She added: 'Before the kids get their pocket money, they understand they must help with chores around our home such as unloading the dishwasher, hoovering and washing the car. They also know if they don’t do them – they don’t get paid!'
How to implement savings tips
Halifax explains how to teach your kids about money by following 3 simple tips:
Stash it: You could give your child a piggy bank which can help them save up their own money and keep track of things.
Talk about it: Speak openly about money with your kids. Talk about spending, budgeting and saving.
Set a goal: Discuss how your kids can meet their savings goals. Help them picture what they really want – whether it's a games console or perhaps their first car – and help them work out how they can reach it.
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