We’re making updates to our systems on Saturday 8th May and some of our CTF and Junior ISA online functionality may be unavailable. Thanks for bearing with us, we’ll be back up and running as soon as we can.

Pocket money economy worth £224 million a year

Posted in: Research

  • Two in three children (65%) get weekly pocket money[i], helping to teach them about money from a young age
  • On average children get £6.90 a week, starting from the age of five until the child turns 18, adding up to a total of nearly £5,000 being given to every child
  • One in five parents (19%) discuss and negotiate the amount of pocket money the child receives based on behaviour, or completion of homework and chores
  • Vast majority of children (84%) save some of their pocket money, either occasionally or every time they receive it[ii]

Research from financial services provider OneFamily has revealed that the UK pocket money economy is worth £224 million, with children receiving an average of £359 a year.

On average children get £6.90 a week, starting from the age of five, until the child turns 18. In most families (58%), mum gives the lion’s share , with dad handing out the cash in a third of families (29%) and in one in ten families (9%) it is the grandparents that splash the cash.

The vast majority of children (84%) save some of their pocket money, either occasionally or every time they receive it towards bigger items.

Steve Ferrari, Managing Director of children’s savings at OneFamily comments:

“Pocket money is a powerful tool for parents to teach their child invaluable life skills that will help them later in life such as budgeting, spending and saving.

“Just last month it was reported that young people in the UK are losing the savings habit – with more than half (54%) of 22 to 29-year-olds living with no savings at all, compared to 41% in 2008 .

“One in five parents (19%) say they will discuss and negotiate the amount of pocket money their child receives, but it is important to discuss what children can do with their cash too. The way we spend our money has changed a great deal over recent years, with many people not carrying cash and instead paying for everything via a card or even mobile phone, so its ever more important that parents teach their children about the value of money.”

Many parents encourage their children to ‘earn’ their pocket money, with a third of children (32%) being asked to complete a task such as tidying their room, the amount given to older children is dependent on their school performance (25%) and the number of chores they complete (22%) . If parents are doing this they should also try and give the pocket money on the same day, like a regular wage, as this helps to teach children budgeting.

[i] OneFamily pocket money survey February 2018
[ii] OneFamily OneVoice survey October 2018