Pandemic pocket money

Our research shows that one unexpected effect of the pandemic is that it has hit UK teen finances to a tune of £156 million… That’s a reduction – not an increase!

Pandemic Pressures

There are several reasons why teens have been affected so much. Many parents are struggling with the financial pressures brought on by COVID-19. Parents are also reducing the amount of pocket money they give as they feel that their children don’t need as much pocket money given lockdown restrictions. And of course with many teens working part time in retail or hospitality etc, they are getting less money, being furloughed or losing their jobs altogether.

On the flip side…

But it’s not all doom and gloom. Resourceful teens are taking on more chores around the house in an effort to earn more money. Twenty six per cent of parents say that during the pandemic, their children have taken on more household tasks than their partner. And as well as enabling teens to earn more money this way, with families sharing the same space to work and live in, 49% of parents say that having their children pick up some household tasks has helped to keep a more harmonious relationship with their partner.

Moving with the times

Most of the types of chores that teens are picking up are pretty traditional. For example, hoovering (70%); cleaning their room (66%) and doing the dishes (63%). However there are new types of tasks that have emerged. A fifth of teens have been helping to fix tech at home and 21% have been helping to home school siblings. Another surprising development is that whilst the pandemic has driven us to become a more or less cashless society, over half of parents still give pocket money in cash.

Home help

But it’s not just pocket money that’s been affected by the pandemic. One in 5 parents with savings accounts or Child Trust Funds for their children, have decreased or stopped the regular payments they were making into the account. With many parents worrying about the impact on their child’s savings.

So could paying for household chores be the key to a happier home? Busy teen, clean house and a little bit of money for their savings pot. Win, win.