CHILDREN’S pocket money payouts have risen more than twice as fast as their parents’ wage increases since the late 1980s, research has found.
On average, a child aged between eight and 15 years old living in Britain receives £6.35 a week - a sum which has surged by 462% since 1987 according to Halifax. In Scotland, children receive £6.73 a week, while in Wales they have £5.54 to put in their piggy bank typically.
Over the same 27-year period, the typical annual wage has increased by 188%, from £11,648 in 1987 to £33,511 in 2014, according to the findings.
Youngsters in London currently receive the highest typical pocket money amounts at £8.26 a week, while those in East Anglia get the lowest, at £5.15 a week.
The spending power of children’s pocket money has improved greatly since 1987, Halifax found. Citing an example, it said that a child’s weekly pocket money income in 2014 would enable them to buy 10 Cadbury Twirls at a cost of 64p each.
This is double the number of the chocolate bars that they could have bought in 1987, when the average weekly pocket money amount was £1.13 and Twirls cost 21p.
Meanwhile, a child could have bought five packets of crisps at a typical price of 20p with their weekly pocket money in 1987. Today, they could buy double that amount, with the average price of a bag of crisps now at 58p.
In order to receive their bumper pocket money payouts, the research also found that two-thirds (65%) of children do some form of household chore.
Tidying the bedroom was found to be the most common task, followed by washing up. Girls were found to be more likely than boys to earn their pocket money by helping around the house.
Nearly nine out of 10 (88%) children surveyed understood that adults receive their money from working. This level of understanding was found to be high even among the eight-year-olds surveyed, with 81% understanding that household incomes are earned by having a job.
Some 82% of parents believed that they could confidently teach their children about finances.
Nearly two-thirds (64%) of parents surveyed believe their child understands the value of money. The survey was carried out over the summer, just before financial education was placed on the national curriculum in schools in England, bringing it into line with the rest of the UK.
Richard Fearon, head of Halifax Savings, said: “Understanding the value of money is one of life’s great lessons.
“The fact that children are being taught the concept of how to earn money and the value of that money through pocket money is fantastic.”
Halifax has been conducting the pocket money research since 1987 and the latest research was carried out among more than 1,100 children aged between eight and 15 years old, with some official figures also used as part of Halifax’s calculations.
Here are the average sums of pocket money that children receive each week in different regions:
• London, £8.26
• Scotland, £6.73
• Yorkshire/Humberside, £6.49
• North West, £6.44
• South East, £6.44
• North East, £6.23
• West Midlands, £6.03
• Wales, £5.54
• East Midlands, £5.52
• South West, £5.33
• East Anglia, £5.15