Pocket money hits nine-year high

Pocket money has been a trend for quite some time, with parents giving their children a weekly allowance to spend.

New research conducted for this year’s annual Halifax Pocket Money Survey shows that the amount they're receiving is increasing, and has now reached a nine-year high.

The results show that children are now receiving an average of £6.55 every week, which is an increase of almost six per cent within the last year. Such a high average hasn't been reached since 2007, which suggests that more parents are now finding themselves in a better financial position.

In addition to this, the number of children who receive pocket money from their parents has increased by three per cent within the last year, now reaching 81 per cent.

Even though the average has increased fairly significantly, 42 per cent of children still believe that they should be getting more pocket money, although 51 per cent are happy with the amount they receive.

Giles Martin, head of Halifax Savings, said: "It’s reassuring to see that the average weekly amount has reached a nine-year high. Some parents are clearly not feeling the pinch in the same way as they have done in recent years, when weekly pocket money dipped as low as £5.89. It’s likely it’ll be a few more years until we reach the dizzy heights of £8.37 in 2005 though, when we saw the highest average pocket money since our records began."

It seems that kids are now becoming savvy with their pocket money, and 79 per cent are saving at least some, compared to just 70 per cent 12 months ago. In fact, 12 per cent of children save all of the money they receive, while 30 per cent save half of their allowance.

Past reports have shown that boys save more money than girls, but this year's research showed an equal scale among genders. However, how much children save can be affected by their age.

Ten-year-olds have the best savings habits, with 88 per cent of them saving either some or all of their pocket money. In contrast, just 71 per cent of 13-year-olds are putting their money aside.

Parents are clearly fond of their children saving, with 90 per cent saying that they encourage their kids to save either some or all of their allowance. 

According to Mr Martin, encouraging children to save their pocket money is a great way to teach them money management from a young age. 

"Getting children to set aside even just a small amount each week can help them to develop a strong savings habit that will serve them well through to adulthood, so it’s particularly encouraging to hear that almost four in five children are now doing so," he added.