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Pocket money: teaching kids about money

How to help your child understand money and savings

The national pocket money budget currently stands at around £40 million per week*, says a a report from Tesco Bank, despite the fact that one in four parents (24%) has reduced the amount of pocket money they give to their children following the recession.

The report, entitled “Every Little Helpers” and the first in the Tesco Bank “Family Matters” series, reveals that the majority of parents (71%) across the UK expect help around the house from their children (aged 4-15 years old) in return for pocket money. The most generous parents can be found in London, giving children £7.81 per week in return for household chores, whilst the UK average is £5.80.

Today’s mums and dads expect children to complete chores ranging from tidying their own rooms to mowing the lawn in return for cash.

Parents helping kids to save

Parents are actively helping their children onto the savings ladder and 35% of children under 16 now hold their own savings account. However, over half (54%) of the children in the UK are traditionalists, preferring to keep their coins and notes stashed safely away in a piggy bank.

Tesco Bank’s “Every Little Helpers” report explores children’s spending and saving habits and how they can be taught the value of money through something as simple as regular pocket money.

David McCreadie, Banking Commercial Director at Tesco Bank, said: “We commissioned this research to understand the changing dynamics of family spending and this report has provided us with interesting findings. It’s great to see parents talking to children about money and teaching them savings habits at an early age through pocket money.”

The report is available now for parents to download free at https://mediacentre.metafaq.com/help/news/everylittlehelpers/.  It contains help and advice from Dr Elizabeth Kilbey for parents on how to talk to their children about money and teach them about spending and saving responsibly.

Also worth a read:
 - Pocket money: teaching kids about money
The Pocket Money Plan: A Practical Guide to Teaching Children about Money: Three Easy Steps to Help Children Learn About Money [Paperback] by Julie Hedge

£7.15 from Amazon


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