We have just released our second Pocket Money Index!
The Pocket Money Index (PMI) provides an insight into the pocket money habits of children in the UK aged 3-13. If you are trying to decide how much pocket money to give, or how to give pocket money, then the PMI is there to give you a helping hand by showing you how other families are managing their pocket money. It also provides a look at what kids are saving for and how they are using their pocket money!
What is the pocket money average?
We calculate the average pocket money amount by not only looking at any regular weekly amounts given but also what is given for boosts like extra jobs and chores around the house. It all adds up and we think this gives a fair representation of what is being given by Roosterbank families.
The average pocket money given on Roosterbank has dropped slightly from £3.81 in April’s PMI to £3.74 in the July PMI. You can see a breakdown of the individual amounts in the table below and be sure to check out our ‘How much pocket money to give’ tips.
Pocket money is a very personal thing. It doesn’t have to be expensive and it is up to every family to decide what they are comfortable giving. Given as part of a routine, children get a huge kick out of looking after their own money however small that amount might be.
How is pocket money being given?
The majority of parents like to give pocket money on a regular weekly basis (85%). Giving a weekly amount encourages kids to budget for things and its easier for the Bank of Mum and Dad to keep track! Most parents appear to boost for extra jobs and chores on top of the weekly amount, so rather than committing to a set amount a week, kids know that they can ‘earn’ extra pocket money. We think this is really important – as it teaches kids that they need to earn money and it’s gives them a much greater sense of achievement when they do it.
How is pocket money being used?
While children on Roosterbank still save the majority of their pocket money (we reward them with Roostie Interest the more they save which they can then use to redeem prizes), kids are also saving up and buying a huge variety of things. Skylanders remains the most popular video game, much in part because for interactivity and product extensions, there is little that competes. The Nintendo DS was the most popular product in electronics but it was clothing that kids were spending the most on in the period – particularly footwear which appears to be the statement piece!
You can see the PMI below or view a larger version of the Pocket Money Index here >