Pocket Money Trends in 2024: New Data Reveals Spending Habits of Kids

Pocket money is a longstanding tradition that many children rely on to learn financial responsibility and independence. However, new data from the Natwest pocket money index shows that pocket money is on the decline, with only 30% of families now paying it as part of a regular routine. On average, children are receiving £3.78 a week, down 10p from last year.

Interestingly, pocket money now only makes up 14% of children’s income, with kids finding new income streams through one-off chores or entrepreneurship. The data reveals that children are earning an average of £479.96 a year (£9.23 a week) from these alternative sources, with earnings varying by age group.

One of the most intriguing aspects of the data is where kids are spending their money. Amazon tops the list, followed by Tesco, McDonald’s, Primark, Co-op, PlayStation, Xbox, Sainsbury’s, and Asda. Surprisingly, Apple has been replaced by fashion brand Shein in the top 10.

The data also highlights the growing trend of children saving their money, with a saving rate of 9.5% – not far off the adult average of 10.2%. Gaming, holidays, and the future were the top three saving incentives for kids.

Different families have varying approaches to pocket money. Some parents, like Kirsty Ketley and Konnie Huq, see regular pocket money as a valuable tool for teaching financial literacy and responsibility. Others, like Sharon Olivero-Chapman, believe that regular pocket money can give children the wrong association with money.

Ultimately, how much pocket money children receive and how they earn it varies from family to family. Whether it’s through regular allowances, one-off chores, or entrepreneurial ventures, the key is to instill good money management skills and financial independence in children from a young age.