UK Parents Give £1.9billion a Year in Pocket Money

UK Parents Give £1.9billion a Year in Pocket Money

Nearly every eight to 16-year-old in the UK currently receives pocket money, despite the wider economic downturn and increasing pressure on family income says new research from PktMny.

Two fifths of children receive pocket money weekly, given on average £6 each time. This amounts to £312 annually in pocket money per child, and equivalent to a total spend of £1.9 billion by parents every year.

For those who give pocket money, most parents link it to chores, using it to encourage and then reinforce certain behaviour. It can be a good way to help your child learn, but isn’t for every family.

When asked why they give pocket money, two thirds of parents said it was to reward their child for completing a task.

While on average parents give £6 per child, a generous five per cent give more than £20 a week, and nearly one in ten give pocket money more frequently than once a week.

Louise Hill, COO and Founder of PktMny said: “Without doubt, every family has felt a squeeze on the purse strings this year, yet despite this, nearly every parent still manages to give their children pocket money.

“It amounts to an astonishing £1.9 billion given every year. It's time we recognise the spending power of children and make sure they have access to ways of keeping track of spending and managing their money wisely.

“It’s why we developed PktMny, to create a simple way to give children pocket money online that is controlled by parents whilst also supporting them in learning about money. In doing so, children will gain the financial skills they need for the world they will grow into.”

When it comes to how parents give pocket money, three quarters give cash, despite the fact that this can make it more difficult for parents to track the amounts given and how the money is being used. Only one in ten parents give pocket money via bank transfer.

Some parents give pocket money in exchange for chores

When it comes to how children spend their money, the PktMny research revealed it is used to buy sweets, clothes and video games. This varies according to age, with two thirds of those under nine opting to spend their pocket money on toys whilst half of 16-year-olds would buy clothes.

Dr Elizabeth Kilbey, Clinical Child Psychologist said: “The PktMny research reveals just how important pocket money is to every family, but also how much variation there is in how much and how often it is given.

“For those who give pocket money, most parents link it to chores, using it to encourage and then reinforce certain behaviour. It can be a good way to help your child learn, but isn’t for every family.

“My view is there is only one hard and fast rule with pocket money, which is to give what feels right to you, then to stick to your decision”.

For more information or to start a free trial go to www.PktMny.com

How much pocket money do your children get? Tell us in the comments below or tweet us @FemaleFirst_UK

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