British Children Receiving Less Pocket Money
27/08/2008
Parents are tightening the purse strings as the credit crunch takes hold. Average weekly pocket money in 2008 dropped 23% to £6.13 a week, according to research from Halifax.
This actually represents a loss of £3.30 - rather than £1.88 - in real terms, when the increase in inflation is taken into account. Pocket money today would be £9.43 had it risen in line with inflation.
Head of savings at Halifax, Tony Wilcox, said: "Our latest findings really show a mixed bag - pocket money doesn't appear to have increased this year but children don't seem to fund any major expenses from their allowance."
It may be that British children are not so hard done by as it might appear. Their lower amounts of pocket money look to have been balanced out by parents tightening control on capital expenditure. Parents are starting to purchase larger items out of the household budget, with pocket money doled out for minor expenses.
The research by Halifax also reveals regional differences in children's pocket money. London and Scottish children are the best off, with average weekly amounts of £8.47 and £8.20 respectively. Children in the East Midlands and the South West, by contrast, have to make do with £4.46 and £4.58 respectively.
This actually represents a loss of £3.30 - rather than £1.88 - in real terms, when the increase in inflation is taken into account. Pocket money today would be £9.43 had it risen in line with inflation.
Head of savings at Halifax, Tony Wilcox, said: "Our latest findings really show a mixed bag - pocket money doesn't appear to have increased this year but children don't seem to fund any major expenses from their allowance."
It may be that British children are not so hard done by as it might appear. Their lower amounts of pocket money look to have been balanced out by parents tightening control on capital expenditure. Parents are starting to purchase larger items out of the household budget, with pocket money doled out for minor expenses.
The research by Halifax also reveals regional differences in children's pocket money. London and Scottish children are the best off, with average weekly amounts of £8.47 and £8.20 respectively. Children in the East Midlands and the South West, by contrast, have to make do with £4.46 and £4.58 respectively.
