Parents cut back ‘to give kids more money’

Parents are cutting back their spending during the recession on items such as petrol, food and clothing, amid fears of falling into debt, but are giving their children more pocket money than ever before, it has emerged.

Research conducted by the Post Office revealed that adults are spending £35 less on fuel and clothes and £56 less on food a month, while the London School of Economics (LSE) found that their offspring – on average – receive £6.84 a week in pocket money, the Daily Mail reports.

This compares to the relatively low amount of £1.18, which was the norm in 1987 – an increase of over 500 per cent.

The LSE report – Teen and Tweeneconomics – also found that, between seven and 15 years old, children will spend approximately £6,000.

Given these figures it is perhaps unsurprising that many consider financial security to be an essential factor when considering having a family.

NS&I recently revealed that 64 per cent believe this to be a necessity before children arrive, with many stating that an annual income of £25,000 is essential.

By Sarah Adie