Pocket Money Trends in 2024: Where Kids are Spending and How Much they’re Earning
Pocket money has always been a hot topic when it comes to parenting and teaching children about financial responsibility. In 2024, new data from the Natwest pocket money index reveals some interesting trends in how much pocket money kids are receiving and where they are choosing to spend it.
According to the data, only 30% of families now pay pocket money as part of a regular routine, with children receiving an average of £3.78 a week. While this may seem like a small amount, it is interesting to note that pocket money now makes up just 14% of children’s income. Instead, kids are finding new ways to earn money, with a typical child netting £479.96 a year for one-off chores or entrepreneurship.
The data also highlights the different “salaries” children are earning based on their age. For example, a six-year-old may earn £5.68 for chores, while a 17-year-old could earn £24.71. Kids are also charging extra for chores and squeezing more money out of their side hustles, with earnings from activities like car cleaning and paper rounds increasing.
One of the most intriguing aspects of the data is where kids are choosing to spend their money. While Amazon remains a top choice, fashion brand Shein has replaced Apple in the top 10. This shift in spending habits reflects a changing landscape in how kids are choosing to use their money.
The data also reveals that kids are becoming more financially savvy, with a saving rate of 9.5% – not far off the adult average of 10.2%. Gaming, holidays, and the future are the top three saving incentives for children, showing that they are thinking about their financial future from a young age.
When it comes to pocket money, there are differing opinions among parents. Some, like Kirsty Ketley and Konnie Huq, believe that a regular pocket money allowance is a good way to teach children about earning and spending responsibly. Others, like Sharon Olivero-Chapman, think that giving children a regular allowance can give them the wrong association with money and prefer to have their children earn money through chores and side hustles.
Overall, the data from the Natwest pocket money index provides valuable insights into how children are managing their money in 2024. Whether it’s through traditional pocket money or new income streams, kids are finding ways to earn, save, and spend their money in ways that reflect a changing financial landscape.