This weekend we read about two research studies launched by Halifax and The Bank of Scotland into pocket money. Both showed the knock on effect that the austerity being experienced by adults has had on kids. This year the average pocket money income has decreased 27p.
Whilst 27p may not sound like much, it’s a drop of nearly 5 per cent, which over a year means our children have 'lost' value equivalent to more than 23 chocolate bars from their total pocket money.
These trends show just how important it is to talk to your kids about how to make the most of whatever pocket money they receive and teach money saving tips for kids. The good news is that already more than two thirds of UK children say they save a quarter of their weekly pocket money meaning this conversation should be an easier one to have that you may think.
We as adults have been helped in recent years to manage our money with technology. Mobile banking apps and online tools have made money easier to use. We now need to help our children access and learn from tools that reflect the way they see money being used by adults. Above all, and on this we agree with Bank of Scotland economist Nitesh Patel, we believe that parents should see pocket money as a way of teaching their child about money. As Nitesh puts it "Pocket money gives them [children] valuable insight into the benefits of both short and long term saving."