Piggybank boost: Kids to receive pocket money pay rise
New research from Barclays reveals that children in the UK are set to receive a pocket money pay rise this year, as average weekly 'salaries ' are to increase from £6.97 to £7.58 - almost twice the rate of inflation.
The research shows how much parents value having their children lend a hand around the home, with over two thirds (68 per cent) rewarding them with pocket money.
Kids have to prove they 've put in the work to earn those extra pennies though, as consumer research conducted by OnePoll suggests the overwhelming majority (74 per cent) of parents say a pocket money pay rise is dependent on their child picking up more jobs around the house.
For the savvier youngsters, it may be worth focusing their efforts on household jobs such as washing the car, looking after younger siblings and cleaning the bathroom, as these are set to reap the biggest pay-outs - worth an average £2.28, £2.27 and £1.85 respectively.
Perhaps predictably, the most popular way for kids to spend their money is on sweets and chocolate (38 per cent), followed by toys (33 per cent) and video games (32 per cent).
But what is changing is the way in which parents dish out the pennies - whilst six in 10 opt for the traditional cash-in-hand, almost a quarter (22 per cent) now give pocket money via a bank transfer.
The good news is that there may be a generation of savvy savers on the horizon, as over two fifths (44 per cent) of children resist the temptation to spend their hard-earned money and instead choose to save it. This has clearly impressed their parents, as over half (53 per cent) say that their child is good at managing their money.
Gillean Dooney (pictured), head of families at Barclays, said: “If your kids are happy to do their bit around the house, pocket money is a really good way of teaching them the value of money at an early age. Many of the parents we surveyed said that this was one of the biggest motivators behind giving pocket money to their children.
“It 's also a great way to help youngsters learn about the benefits of saving their spare cash - and the importance of patience and saving up to get something you really want. At the same time, if kids are 'earning ' their money by fulfilling household chores, you 're helping them to build up a strong work ethic.
“It 's never too early to start learning about money, and there are a number of handy resources available if you 're looking for more guidance on how to bring up money education at home, such as Barclays LifeSkills. I hope the nation 's kids enjoy their pocket money pay rise in 2022 - it seems like many of them have earned it! ”