Kids pocketing more money

Children were given seven per cent more pocket money last year, according to Halifax.

09:57 01 April 2005

Children were given seven per cent more pocket money last year, according to Halifax.

The bank found that parents are now giving their children on average 8.37 a week, with boys being paid about 50 pence more than girls.

Halifax found that this rise was four times the rate of inflation, the measure of how much the price of goods in shops rises in a year.

"It appears that children are certainly getting a good deal when it comes to pocket money levels, which have increased well above the rate of inflation over the last year," said Cheryl Millington, head of savings at Halifax.

Welsh children were the best off, receiving 13.51 a week, with those in the south-west being given just 4.87. Children in the capital saw their weekly money go up 41 per cent to 10.22 in 2004.

Boys receive more money overall, but girls in the 12-16 age bracket get more money than their male counterparts.

But things are not all rosy for the nation's youth as more and more children have to work for their money.

"Many more children now have to do chores to earn their pocket money, as parents try to teach them the value of money. We are also beginning to see a generation of young consumers who are starting to take control of their own earning potential, spending and savings habits," Ms Millington noted.

While last year fewer than one child in seven had to work for their money, now a massive 55 per cent are made to do jobs around the home to receive their allowance.

Halifax, which has been running its pocket money survey since 1987, also looked at how children are spending their money.

While four out of five children are spending money on sweets, chocolate and crisps, more than two in three now own a mobile phone. Almost half of these pay their own bills, with 80 per cent of children's mobile phones set up on a pay-as-you-go basis.

More than half of children shop online, with CDs the most popular purchase followed by computer games and DVDs/videos. Almost three quarters of children also splash cash on going out and eating out.