Friday, 2 August 2013

Parents and Pocket Money - Are we cutting back?


PARENTS’ POCKETS GETTING TIGHTER
Quarterly Pocket Money Index highlights decreases in pocket money

The results of the latest quarterly Pocket Money Index (PMI) have indicated that pocket money has decreased for children aged 3 to 13. 

The PMI, which reveals the habits of families across the UK, has identified that average pocket money now stands at £3.74 per week, compared to £3.81 last quarter.

The Index data is compiled by pocket money website, Roosterbank.com, from a sample of 1000 members during Q2 (1 April – 1 July 2013).

6 – 9 year olds have lost the most, with average pocket money for this age group down from £3.48 to £3.15.

The data shows that even the Tooth Fairy has tightened her pockets - the amount given per tooth has decreased by 14.7% (from £1.70 per tooth to £1.45).

Day to day jobs have also seen reduced pay, with hoovering dropping 20% to an average £1.08 each time and gardening down 8% (£3.23 to £2.96).
It also appears mum and dad have strayed away from stashing cash down the sofa. The average amount found around the house has shrunk by 69% to just £0.82 (from £2.67).
Roosterbank suggests the decrease in pocket money could be attributed to the uncertainty in fuel prices and the arrival of winter fuel bills from the cold winter period.
Financial pressures of upcoming summer holidays may also mean less disposable income for parents.
Whilst rewards for individual jobs have decreased, parents are getting cannier, choosing instead to pay out for chores lumped together. Kids putting their hand to general household cleaning are getting rewarded with an average pay out of £2.42 each time.

The sunshine has meant mum and dad are also more keen on a clean car – raising pay from £1.17 to a giant £4.25 on average (up 263%). 

But the Easter and half term periods took their toll on parents’ pockets. Lucky older brothers and sisters received an average of £9.10 per time for looking after younger siblings - the best paying pocket money job according to the PMI. 
Despite receiving reduced pocket money, children are still spending:
  • Apps have overtaken books as the most popular product to buy with pocket money, with Minecraft in at number one
  • Diary of a Wimpy Kid is the most popular book bought with pocket money
  • The most popular DVD bought with pocket money is Rise of the Guardians
  • The average spend on a mobile top-up has dropped by 39% (to £4) while kids are spending an average of 50% more on magazines
  • Skylanders Giants is the most popular video game purchase – it clearly has staying power remaining at the top of the list for 6 months running
Ben Edwards, CEO of Roosterbank comments, “The latest Pocket Money Index shows that whilst parents’ pockets are being squeezed, rewarding children is still important to them. Children are also doing their bit in the household to help mum and dad while earning some extra pennies, either via day to day activities like cleaning, or simply by looking after younger siblings during the holiday periods”.

“Pocket money doesn’t need to be expensive. Small amounts given regularly and managed in a fun, easy way will make a difference to every child’s attitude to money. Structured pocket money routines, linked to tasks and goals, will result in children having a better appreciation of the value of money and saving.”

The Roosterbank Pocket Money Index (PMI) is a snapshot of how families manage pocket money and is distributed on a quarterly basis. The PMI measures pocket money averages, spending and saving habits and age and gender breakdowns.