Whether it is small but frequent additions to piggy banks, or regular, modest contributions to their child trust fund, parents play a key role in helping children develop positive attitudes towards managing money and building a nest egg for the future.
(PRWEB) May 20, 2010
Pocket money has not been a casualty of the credit crunch, and Glasgow takes top slot as the UK’s pocket money hotspot.
Despite the economic pressures faced by many families, a new study shows that most British parents have maintained their commitment to pocket money. Children in Glasgow receive the most, being treated to an average of £4.87 a week – which equates to an annual pot of £253.24.
Children here receive pocket money as early as age 4 – which means the savvy savers among them could have piggy banks brimming with a total of £3,545.36 by the time they are 18.
In contrast, children in Southampton get £2.69 a week, or £139.88 over 12 months. Little ones residing in the maritime town start getting pocket money from age 4, equating to a £1958.32 pocket money total to age 18 – but this is £1,587 less than that received by children in Glasgow.
The poll of 3,000 UK parents1, conducted by Engage Mutual, shows 68 per cent give their children pocket money and that most British parents haven’t reduced the amount they give, despite the credit crunch. Only seven per cent stated they are giving less than last year.
On average mums and dads give £4.08 a week pocket money.
The survey shows the second luckiest children live in Newcastle, where they receive £4.67 a week or £242.84 a year.
In third place comes Cardiff – parents here treat their offspring to £4.65 a week, a yearly total of £241.80.
Sixty seven per cent of children have to work for their weekly money – doing chores such as making their bed, vacuuming and dusting the house, or tidying their bedroom.
Most children (65 per cent) save some of their pocket money.
Karl Elliott at Engage Mutual said:
“Whether it is small but frequent additions to piggy banks, or regular, modest contributions to their child trust fund, parents play a key role in helping children develop positive attitudes towards managing money and building a nest egg for the future.”
“From simple budgeting, to the concept of work and reward, weekly pocket money can be a good springboard for children to learn some important life skills.”
The poll shows that children living in Portsmouth, Coventry and Birmingham all receive an average of more than £4.00 a week pocket money. But not all parents offer their children a wealth of cash every week.
Children in Swansea get £3.04 a week and those living in York get just three pence more at £3.07.
Karl Elliott continued:
”Parents see pocket money both as an opportunity to encourage and reward good behaviour in their children, and a means of penalising other behaviours by withholding the weekly financial contribution.”
“The majority of parents surveyed tell us that they watch what their children are spending their pocket money on, and encouragingly, in addition to providing regular pocket money, 74 per cent of parents have also set up a separate childrens savings account.”
For a minority of parents (seven per cent) who are giving less pocket money than last year, the main reasons given were: times being hard; rising mortgage payments; and a decision to be more financially cautious.