It’s been an interesting year for young people in terms of pocket money as well as learning about money and how to manage it in the modern world.
We’ve spoken to our fair share of parents and followed the progress of Financial Education in the National Curriculum with great interest. So, through completing our own research as well as what other studies have found, we’ve put together a few things that we think sum up young people, allowances and learning about money in 2014.
1. Financial education has come to the National Curriculum to be taught in secondary schools. This is no doubt a huge step in better preparing young people for the time they’ll be managing their own money. But, young people still need hands on, practical experience in managing money. As The Money Advice Service have highlighted in their research, parents are still the biggest influencers on theirs children’s attitude to money, so financial education alone isn’t going to teach young people all they need to know (it takes a parent’s touch to do that).
2. When we look at goHenry members, we can see that the average amount of weekly pocket money amounts to around £6.43. Girls are getting a little bit more on average, receiving £6.48 whereas boys receive £6.38. And our members save over 40% of their pocket money/allowance each month!
3. In a survey completed for First News (a newspaper for young people) earlier this year, 62% of children believe they shouldn’t be given pocket money for doing nothing.
4. Out of all the tasks goHenry parents set for their children and teens, tidying the bedroom is the most frequently set task. This comes with an average payment of £1.15. Other frequently set tasks include doing homework in second place, emptying the dishwasher in third and doing the recycling in sixth. (What a green bunch!)
5. A Ipsos survey revealed that UK teenagers are paid less than teenagers in other parts of Europe. Up to the age of 10, UK children fair quite well against their European counterparts, but by 15, they are receiving half the amount of weekly pocket money.
“… Austrian parents being the most generous. They give a typical £28 a week at this age – almost three times the amount given by British parents – while the Italians are doling out £24. Only parents in Poland, Romania and the Czech Republic pay less than UK parents, at between £8.50 and £9.30 a week.” – Lisa Bachelor, The Guardian
6. The great ‘to pay or not to pay’ for chores and tasks debate continues through 2014. Many parents we’ve heard from tell us that teaching children from an early age that you don’t get money for nothing and if you work hard you’ll earn more is great preparation for the working world.
However, other parents that they don’t pay money for tasks as they believe the family should work as a team and everyone needs to appreciate what it takes to run a home and pull their weight.
All in all, 2014 has been an interesting year for the changing landscape of young people and their relationship with money. As a company that believe in giving children, teenagers and their families they tools they need to learn about money, we’re very interested to where the story will take us in 2015.