Pocket money in the UK rose more than the rate of inflation last year, and children have found ways to add to their incomes beyond that, a new report says.
Agrobacterium | Stocks | Getty Images
Despite the wider financial crunch Britain faces, British children are justifiably cheered by new figures showing their allowances – known in Britain as “pocket money” – outpaced inflation and money over the past year. Their parents’ wages increased.
Allowances have surged an average 10.69 per cent compared with a year ago — faster than inflation, which has risen 10.4 per cent annually over the time frame covered by the NatWest Rooster Money Pocket Money Index released Thursday.
On average, British children are now getting £333.84 ($415.08) in pocket money a year, £32.24 more than in the last survey period. On a weekly basis, the average price is now £6.42, about $8, up £0.62 from a year ago.
Six-year-olds saw the largest year-over-year increase, more than triple the rate of inflation, to 34.5%. They are now earning £3.94 a week, more than a pound more than the previous £2.93.
The 15-year-olds were the only ones to see their pocket money drop, by £0.52 to £9.72 a week. However, those who were only one year older took home the most money – 16-year-olds received £12.75 a week, slightly higher than the 17-year-old average of £12.59.
But Will Carmichael, chief executive and co-founder of NatWest Rooster Money, points out that the cost of living crisis is affecting pocket money.
“Household budgets are being stretched like never before and we find that fewer children are receiving regular pocket money each week than in 2021/22,” he said in the report, adding that many families were working to prevent their children from being affected. The effect is through price increases.
Annual NatWest Rooster Money pocket money index Based on data collected from 126,122 children in the UK between March 2022 and February 2023. “Pocket money” was defined as the sum of regular pocket money and extras such as birthdays, the Tooth Fairy, good grades and chores.
The added value of pocket money
The report found birthdays brought the biggest average boost of £47.01, with good grades on exams or reports coming in second at £15.98, down around £1 on the previous year. A good grade in maths gives children the biggest pocket money of all subjects.
Other common reasons parents give for topping up their children’s pocket money are good behaviour, homework, reading and the Tooth Fairy – however, this only increases a child’s earnings by an average of £3.24.
In terms of household chores, financial rewards for the five most popular tasks ranged from £2.46 for cleaning the car to £0.64 for helping with gardening.
The report found that children earn extra cash on top of pocket money. Reselling their clothes and toys gave them the biggest boost – £26.26 on average. Nanny came in second, earning a significant 24% increase in income from it, while tutoring came in third.
saving and spending
The kids don’t spend all their money either – on average they save 8% of their cash a year, or £27.94. NatWest Rooster Money calculates that figure would be more than £265m across all young people aged six to 17 in the UK.
“That’s enough to fund The Lego Movie (and four sequels) or buy 80,547,985 Happy Meals,” the report said.
Happy Meal maker McDonald’s is also one of the places kids like to spend their money, coming in at No. 4.Apple holds one place ahead, while the top two spots are taken by UK supermarket chains Tesco and Co-op.
Another supermarket chain, Sainsbury’s, also made the top five. Online spending declined on platforms such as PlayStation Network and Microsoft Xbox – which currently rank ninth and tenth.
“Despite advances in things like in-game currency, it’s clear that some things haven’t changed,” Carmichael said.
“Kids still flock to the shops and newsstands, presumably to pick up the classic candies, drinks and treats, just as many of us remember doing as kids!”