Money blog: 10 most popular places for kids to spend their pocket money – new data shows interest rates will remain the same in 2024

How much is pocket money in 2024 and where will children spend it? New data reveals everything

Author: Bhvishya Patel, Money Team

Data shows that pocket money is decreasing, but children are finding new ways to pay for their everyday “basics”.

Figures from the Natwest Pocket Index (taking into account 308,000 children’s transactions on the Rooster app) show that only 30% of families regularly pay pocket money (down 2%), with children earning on average £3.78 a week (down 10p on last year).

In fact, pocket money currently accounts for just 14% of children’s income. Instead, they find new sources of income – the typical child earns £479.96 a year (£9.23 a week) in one-off jobs or entrepreneurship.

These “salaries” obviously vary depending on age groups…

£5.68 for a six-year-old
£24.71 for a 17-year-old

British children are now charging extra for housework and squeezing more money from side hustles.

Car cleaners earned an average of £3.25 – 32% (79p) more than a year ago
Paper earnings increased by 2% (45p) to £23.10 a week
However, it was a worse year for resales, with earnings down 15% to £22.62 a week.

Perhaps the most interesting part of the data is where kids spend their money.

Amazon took first place, followed by Tesco and McDonald’s. Next in line are Primark, Co-op, PlayStation, Xbox, Sainsbury’s and Asda, but there is no place for Apple this year, replaced by fashion brand Shein, rounding out the top ten.

NatWest Rooster Money stated that “baby money is completely changing shape”…

“Children are increasingly supplementing their (pocket money) in other, more sophisticated ways. This move towards greater independence and maturity in earnings has been fantastic and bodes well for a bright, financially secure future.”

Will Carmichael, CEO and founder of NatWest Rooster Money

Illustrating this maturity is the children’s savings rate of 9.5% – not far off the adult average of 10.2%. Games, vacations and the future are the three most important saving incentives, in that order.

Is there a right answer?

Kirsty Ketley, a parenting specialist from Surrey, said she gave her 11-year-old daughter Ella £5 and her seven-year-old son Leo £2 a week in cash.

They both started receiving pocket money at the age of six.

“I often tell parents, even if they have children as young as four, that it’s good to start giving some pocket money because having that is a very important life skill – learning how to manage money because it’s not taught,” she said.

Presenter and children’s book author Konnie Huq, who has two sons, Covey, 12, and Huxley, 10, told the Money team that regular pocket money is a “really good way” to get children into the habit of earning and spending.

She said receiving a regular allowance helped teach children “responsibility” and “financial literacy”.

“This is what they will do when they become adults,” she said. “I have always said that children are formed and formed between the ages of 0 and 7. You want to instill in them values now that will accompany them at a younger age.”

Sharon Olivero-Chapman, CEO and founder of Harrienna Health, disagrees. She has always felt that ordinary pocket money was “the wrong message to give to children”, and her 13-year-old daughter, Harriet, is one of those who earns money on the side.

“Pocket money gives them a bad association with money,” she said. “They just give you money on a plate, and that’s not real life, is it?”

Mrs. Olivero-Chapman said that if her daughter actually wanted to buy something, she would have to figure out how to get that money and then assign her chores to earn it. She said it costs £1 to unload and fill the dishwasher, £1 to fill and empty the washing machine and 50p to make the bed.

“It’s not a regular weekly event,” she explained.

Ms. Olivero-Chapman said the entrepreneurial streak ran in the family. Her company has made almost £1,000 so far.

Your stories about pocket money – how much, how and in return for what

The Dursuns in Scotland

Aga Dursun, 41, a PMO analyst from Erskine, gives her 13-year-old son Galip £3 a day and her nine-year-old son Troy £1 a day through transfers to her Starling account. They also receive £20 each on payday. No responsibilities required.

“It gives them a lot of freedom, but they also learn the value of money, because, for example, now if they want more expensive shoes, they have to save,” he says.

“It’s mostly spent on games, which breaks my heart.”

Shaws, London

Sammy Shaw, from Enfield, said she gives £3.50 a week to her eight-year-old twins Teddy and Hope via her Natwest Rooster Money card.

To earn money, her son and daughter must complete a series of activities, and if they don’t, the money will be withheld.

“My two have a lot of work. The first thing they have to do is make their bed and dress themselves. When they come downstairs, they have to practice on the keyboard for 10 minutes, do Times Tables Rock Stars (a digital math app), and then do 10 minutes of reading.

“The parent must go into the app and approve these steps, and if they don’t complete them, a percentage will be deducted.”

Last year the twins saved up to buy family theater tickets for £35 each.

Regulski, Wales

In Caerphilly, Dean Regulski (44) leads a quite similar lifestyle: money in exchange for washing, ironing, dog walking, washing and vacuuming. He and his wife give their children Emmeline, Nancy and Abraham (aged 12 to 15) £10 a week, also using the Rooster scheme.

“Every time they want to make a transaction it sends a signal to my phone so I can immediately talk to them about what they’re buying, and if it’s just sweets I can limit that transaction in the app to be a £1 transaction ” – Dean says.

“The other day my son asked if he could buy something for over £40 and I replied he could buy it next month but it would cost him extra responsibilities. I explained to him the interest.”

The Moores in the West Midlands

Ben Moore, 40, from Solihull, said his 13-year-old twin daughters had received £5 a week pocket money for the past two years.

They used GoHenry before switching to a debit card.

“We spent a year at GoHenry and it was good because we could say, ‘you can’t spend this money on McDonald’s,’ and limit the type of spending, but there was a monthly fee for that,” he said.

Chores are not a requirement because he “loves it.” His daughters use the money to “go out with friends, not just sit on the phone.”

Scots in Wiltshire

Fiona Scott (58) from Swindon, Wiltshire, said her three children Samantha (24), Georgia (22) and David (17) were given pocket money until they were able to earn their own money.

“We always had a little book at home showing what was going in and what was going out, and that’s what we had to put out, so I encouraged them all to do it in different ways. We are used to seeing and understanding what a household budget is,” she said.

The Joneses in the West Midlands

Mother-of-three Jenny Jones, 43, said her 11-year-old daughter Rebecca was paid £10 a month – she had no responsibilities but everyone was expected to take a shit.

It started with 50p a week when she was seven, but when she turned 11, Mrs Jones opened a junior account with Barclays and the money came in every month.

“It taught her how to manage money in general. Right now he loves bubble tea and getting pieces of jewelry, so he has to think about what he wants and can he afford both? This allows her to make these decisions.

“These are just life lessons, right? We can’t have everything we want and decisions have to be made – and it’s okay to make a bad decision, which is normal.”