New research by Halifax has shown that around 65% of children aged between 8 and 15 years earn their pocket money. Parents are keen to teach the value of money by expecting their children to undertake housework chores in exchange for an allowance.
With 42% of children confirming this situation, top of the job-list is tidying bedrooms while a quarter of children (25%) are doing the washing up. Meanwhile, tasks most commonly avoided include ironing (3%), making dinner (4%) and helping with the shopping (8%).
The ratio for receiving pocket money for household errands is higher for girls, 45% compared with 39% of boys. This trend continues for tidying the bedroom with 45% of girls and 39% of boys. Washing up duties is given to 27% of girls and 24% of boys, with cleaning at 28% and 21% respectively.
As children turn into 13-year-old teenagers, the scenario of earning pocket money increases. Three quarters (75%) were shown to receive payment on completing work in the house, whereas 65% is the average figure for ten to eleven year olds.
Statistics show there is an increase in children who are aware of where money comes from. Two thirds (64%) of children surveyed said money came from working, an increase of 4% from the previous year. In support of this, 9 out of 10 (88%) of children had an understanding of parents going out to work to earn money, a concept matched by 81% of eight year olds.
When asked, 64% of parents believed their children to understand the value of money. In addition, 82% were confident they could teach their children about finances as a method of preparing them for adult life.
In response, Richard Fearon, Head of Halifax Savings, says: “Understanding the value of money is one of life’s greatest lessons. The fact that children today are being taught the concept of how to earn money and the value of that money through pocket money is fantastic.
“It’s also good to see that parents are increasingly confident in being able to explain finances to their children, and children are responding to this by displaying a level of understanding which will be of great benefit to them once they enter adult life.”