A new report has suggested that instead of being handed a weekly allowance by their parents, children are increasingly being paid for undertaking chores and finding their own employment. Financially stretched parents have decreased their spending on pocket money from a year ago, according to research by NatWest Rooster Money. However, the downloaded financial learning app for children also revealed children under the age of 17, are finding ways to add to their income.
Families using the NatWest Rooster Money app to transfer pocket money lowered the numbers paying it regularly compared to just a year ago. In 2017, 32% paid pocket money to their children compared to 30% today, and usually on a Saturday. In contrast, families paying their children for chores has dropped considerably from 47% in 2017 to 40% this year. However, children working to supplement their pocket money by developing their own business by selling recycled items or running a paper round have increased.
About 300,000 children aged 6-17 using the Rooster Money app, providing information for the research, which estimated that on average, children earn £9.23 per week. As a result, the information presented, based solely on those using the Rooster Money app, is limited to an estimate provided by NatWest.
Some children are generating healthy incomes. Scarlett, aged 10, said, “I don’t really get pocket money but I have my own little business [applying glitter tattoos]. So far, out of all of the parties I’ve done this year, I’ve probably got like 100 and something pounds.” Holly, nine, commented: “Every week I get £1.50, I make my bed, I do the dishwasher, I do the dusting, I clean my bedroom, I put my clothes away,” and added, “My favourite thing to spend it on is probably sweets.” Joe, 12, explained that he doesn’t generally receive pocket money but is rewarded for good behavior, “If I get an accomplishment I will get £10.”
The report also concluded that children were most likely to use their savings to purse their interests, with gaming and holidays ranking as the top two, although for at least one of those interviewed, the ultimate goal was to save up for a car
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