Whether to give pocket money, and at what age, and how much to give are issues that often concern parents.
To a large extent it depends on family values, practices and finances. A new survey by Homeloans Ltd shows the average age children start receiving pocket money is around six with children expecting it now more than before.
13% of parents say they began giving their children pocket money before they turned four.
The majority of parents who give their kids pocket money do so on a regular basis (weekly, fortnightly or monthly), while around a third give it out as and when needed. And some parents pay it as a reward for good behaviour or performing well at school.
The majority of survey respondents who pay pocket money said their kids save their money, while others spend it on food and lollies, toys or video games – and, for the older ones, phone credit.
“It’s great to see that the younger generation are putting their money away,” says Will Keall, Homeloans’ national marketing manager.
“Teaching children how to manage their money from an early age and save something every month is an important trait. Saving a little and often will certainly stand them in good stead for later on in life.”
But what hasn’t changed is how kids earn their pocket money. Most still need to do chores – and those chores haven’t changed: tidying their room, making the bed, washing the dishes. Then there’s mowing the lawn/gardening, looking after the dog (walking, washing, feeding, picking up its mess), taking the rubbish out, washing, hanging and folding clothes to name but a few.
“What we also found from the survey that many of the respondents believe that pocket money is expected now, whereas it was regarded as a luxury item when they were kids,” says Keall.
“And it appears the kids don’t have to do as many chores as their parents did.”
Latest figures on what kids receiving today:
- Of the children receiving pocket money before the age of 6, 81% receive under $5 a week.
- Before the age of 10, more than half (59%) of children continue to receive under $5 per week, but for those aged between 10 and 12, they’re more likely to receive around $6 - $10 (49% of respondents).
- With age comes slightly more money, and the survey showed that for teenagers, more than two thirds (67%) earn $10 a week or more, while over half (52%) of 16-18 year olds are receiving more than $20 a week.
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