It’s been a big year for developments in financial technology (looks like we’re part of that) and 2016 looks set to see even more. In terms of family finances in 2015, British households have been spending more on eating out and other leisure activities than in the last four years. However, Barclaycard has also found that UK households are watching the pennies closely when it comes to essentials like groceries and clothing.
With all this going on throughout the year, what changes have we seen when it comes to your kids and money? Here are our top three most notable trends in children’s finances:
1. Digital payments extend further than just contactless cards
Apple Pay and Android Pay is a new form of payment that is widely available throughout the UK. This means that anyone with the latest smartphone, can tap that on a contactless reader, rather than getting out their card or cash. But what does this really mean to our children? As our CEO Alex tells City AM earlier this year, there are a number of ways we can encourage our children to still learn vital money management lessons, while moving away from cash payments. Read more on this topic here.
2. Is weekly pocket money going out of fashion?
Research suggests that less parent are paying weekly pocket money to their children and simply giving them an amount for certain things. goHenry member and freelance journalist Harry Wallop writes an article about the importance of pocket money to our children’s understanding of money and why it needs to be part of the family’s financial practice in 2016.
3. Pocket money rising faster than wages
Our children seem to be doing better than us when it comes to inflation. Since 1987, pocket money has risen twice as fast as parents’ wages. An average weekly pocket money payment now is around £6.20 compared to the £1.13 30 years ago according to the Halifax Pocket Money Report. The report also shows that the number of parents who ask their children to do chores in return for pocket money has decreased this year.