...By Joseph Benjamin for TDPel Media.
New data on children’s spending habits reveals that the average pocket money for children in the UK has risen to £6.42 per week.
The findings indicate that youngsters have been somewhat shielded from the financial challenges faced by their parents or guardians.
Interestingly, resourceful children have discovered ways to increase their earnings through additional chores and entrepreneurial endeavors.
Surging “Pay Rise” for Six-Year-Olds, Outpacing Inflation
According to the NatWest Rooster Money Pocket Money Index, the overall increase in children’s pocket money averaged 11%, surpassing the rate of inflation.
Notably, six-year-olds experienced the most significant boost, with a remarkable 34% annual increase in their pocket money.
Shifting Pocket Money Routines and Rise of One-Off Payments
While the average pocket money increased, the study revealed a decrease in the consistency of regular allowances.
Only 57% of children now receive a fixed weekly amount, down from 65% in the previous year.
Instead, parents are turning to one-off payments, rewarding special occasions and good behavior.
Children’s Side Hustles Drive Extra Earnings
Entrepreneurial children are finding ways to earn additional income through side hustles, averaging £50.84 outside of their regular chores.
Babysitting experienced a 24% increase in average earnings, reaching £20.55.
Other revenue streams included reselling possessions and offering tutoring services.
Age and Chores Influence Weekly Earnings
Contrary to expectations, 16 to 17-year-olds received the highest weekly pocket money, earning an average of £12.75.
However, 17-year-olds took home a slightly lower amount at £12.59, possibly indicating their increasing financial independence.
The most profitable chores for children included car cleaning (£2.46 per job on average), helping with shopping (£1.11), vacuuming (£0.96), doing laundry (£0.67), and assisting in the garden (£0.64).
Resourceful youngsters even found opportunities to earn money by smiling for photos, learning coding skills, making coffee for parents, or spending quality time with family members.
Chore Completion and Extra Boosts for Pocket Money
The study found that nearly half (47%) of parents made completing chores a prerequisite for receiving regular pocket money.
Additional boosts came from tooth fairy visits, birthdays, good school results, completing homework, or exhibiting good behavior.
Data Collection and Insights
The data was collected from user activity on the NatWest Rooster Money pocket money app and prepaid debit card between March 1, 2022, and February 28, 2023.
The NatWest app caters to children aged three and above, while the prepaid debit card is available for those aged six to 17.
Will Carmichael, CEO of the brand, acknowledged children’s entrepreneurial and proactive nature, stating that they have shown resourcefulness through side hustles and a business-minded approach to earning money at home.
