The children of today receive an average of £8.01 pocket money per week, according to Halifax, compared to just £1.13 in 1987 – an increase of more than six hundred per cent.
To mark the 20th anniversary of Halifax conducting research into children’s pocket money, they have released a report which reveals the amount given has risen more than six times faster than inflation, which has increased by just 99% over the same period.
Pocket money levels have experienced some drops, with last year’s average of £8.20 being higher than this year’s and lower than the previous year’s average, as well as drops in 1994, 1996, and 1997.
South East children have come off the best, with an average of £10.43 per week, compared to those in the North East who get just £5.70 per week, almost 29% below the UK average.
Most of the children surveyed did not have anything particular in mind that they were saving for. Mike Regnier, head of savings at Halifax, commented on children’s saving and spending habits and how they have changed over the past two decades:
“Children's spending power has increased dramatically since 1987, with the average pocket money rising from £1.13 per week to £8.01, an increase of over 600%. This is well in excess of inflation, which has risen 99% over the same period.
“Part of the increase may be explained by changing tastes and technology. Whereas 20 years ago children spent their money on toys or saved towards things like holidays, nowadays children are likely to buy DVDs and mobile phones, which simply didn't exist in 1987.”
Find out more about children’s savings accounts
and Child Trust Funds