Start early to understand money management
01 August 2023Any visitor to our website will know that we talk a lot about money; its flow, its accumulation, and the opportunities and admittedly sometimes difficulties it presents. Learning about money is an evolutionary process, and starting early is never a bad thing. There are many good arguments for children to learn about money management and we certainly advocate this. However, it's usually easier to understand when money is tangible, i.e., when you've got some cash, and this is where pocket money might appear on the agenda.
A recent 2022-2023 UK survey by NatWest for its 'Rooster Money' programme shares the latest update that parents, and perhaps even grandparents, might want to consider if they offer a weekly gift to their younger generations.
What are some of the statistics from the survey?
- Average weekly pocket money in the UK: £6.42 per week
- The rate rises as children get older, with 16-year-olds averaging £12.75 per week, just around double the average.
- The youngest children in the study (age 6) receive on average £3.94 per week.
- Many earn their pocket money throughout the week by helping with household chores.
- Most common day to receive pocket money: Friday
- Most common top-up to pocket money: birthday, at an average of £47.01
- Average increase in pocket money over the last year: 10.69%, just ahead of inflation.
There are many other findings in the report and more can be found here: https://roostermoney.com/wp-content/uploads/2023/05/NatWest-Rooster-Money-2022-23-Pocket-Money-Index.pdf
Chapters Financial is not responsible for the content of external websites/ studies
Remember that children can have their own savings accounts, National Savings & Investments Premium Bonds, pensions and Junior ISAs to save into. Many use these options to start the process of accumulating wealth at an early age (usually with the extensive help of parents and grandparents). Please do get in contact if you would like to look at these opportunities a stage further.
No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899
