Business

Pocket money 'cut for youngsters'

Money in pocket
Image caption Children do not get anything close to £15 in their pockets, the survey found

If parents are struggling to work out how to cope with impending spending cuts, they should ask their children.

British children have suffered a slump in their pocket money, according to research by the Halifax.

The average weekly amount fell from £6.24 a week in 2009 to £5.89 a week this year, the bank's poll of eight to 15-year-olds found.

The last time pocket money fell below £6 a week was in 2003, and it is now far lower than the £8.37 peak of 2005.

"It is encouraging to see that children are still saving, despite the amount of pocket money falling," said Flavia Palacios Umana, head of savings products at Halifax.

"Teaching children how to manage their own pocket money is a great first step to building good financial awareness in our youngsters."

Findings

The poll, of 1,204 youngsters, found that boys were still paid 40p more than girls on average every week. However, this gender pay gap had narrowed from a £1.30-a-week differential in 2009.

Children in Wales managed to get the most pocket money, at £7.77 a week. This was ahead of those in London, who have seen a fall of nearly £4 a week compared with last year, to £6.89.

The lowest amount was given to youngsters in the South West of England, at £5.05 a week.

On average, youngsters saved about 37% - or £2.15 a week - of their pocket money, the poll found.

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