Parents' Pockets Getting Tighter
LONDON, July 30, 2013 /PRNewswire/ --
Quarterly Pocket Money Index highlights decreases in pocket money
The results of the latest quarterly Pocket Money Index (PMI) have indicated that pocket money has decreased for children aged 3 to 13.
The PMI, which reveals the habits of families across the UK, has identified that average pocket money now stands at £3.74 per week, compared to £3.81 last quarter.
The Index data is compiled by pocket money website, Roosterbank.com, from a sample of 1,000 members during Q2 (1 April - 1 July 2013).
6 - 9 year olds have lost the most, with average pocket money for this age group down from £3.48 to £3.15.
The data shows that even the Tooth Fairy has tightened her pockets - the amount given per tooth has decreased by 14.7% (from £1.70 per tooth to £1.45).
Day to day jobs have also seen reduced pay, with hoovering dropping 20% to an average £1.08 each time and gardening down 8% (£3.23 to £2.96).
It also appears mum and dad have strayed away from stashing cash down the sofa. The average amount of found around the house has shrunk by 69% to just £0.82 (from £2.67).
Whilst rewards for individual jobs have decreased, parents are getting cannier, choosing instead to pay out for chores lumped together. Kids putting their hand to general household cleaning are getting rewarded with an average payout of £2.42 each time.
The sunshine has meant mum and dad are also more keen on a clean car - raising pay from £1.17 to a giant £4.25 on average (up 263%).
But the Easter and half term periods took their toll on parents' pockets. Lucky older brothers and sisters received an average of £9.10 per time for looking after younger siblings - the best paying pocket money job according to the PMI.
Despite receiving reduced pocket money, children are still spending:
- Apps have overtaken books as the most popular product to buy with pocket money, with Minecraft in at number one
- Diary of a Wimpy Kid is the most popular book bought with pocket money
- The most popular DVD bought with pocket money is Rise of the Guardians
- The average spend on a mobile top-up has dropped by 39% (to £4) while kids are spending an average of 50% more on magazines
- Skylanders Giants is the most popular video game purchase - it clearly has staying power, remaining at the top of the list for 6 months running
Ben Edwards, CEO of Roosterbank, comments, "The latest Pocket Money Index shows that whilst parents' pockets are being squeezed, rewarding children is still important to them. Children are also doing their bit in the household to help mum and dad while earning some extra pennies, either via day to day activities like cleaning, or simply by looking after younger siblings during the holiday periods."
"Pocket money doesn't need to be expensive. Small amounts given regularly and managed in a fun, easy way will make a difference to every child's attitude to money. Structured pocket money routines, linked to tasks and goals, will result in children having a better appreciation of the value of money and saving."
The Roosterbank Pocket Money Index (PMI) is a snapshot of how families manage pocket money and is distributed on a quarterly basis. The PMI measures pocket money averages, spending and saving habits and age and gender breakdowns.
To view the Pocket Money Index infographic and get an embeddable version, visit: http://info.roosterbank.com/pocket-money-index/july
Pocket Money Index Q2 data collected between 1 April 2013 and 1 July 2013.
Case studies of families with children who use Roosterbank to manage the pocket money they earn by helping out around the house are available upon request.
NOTE TO EDITORS
Roosterbank was established in 2012 and is a free-to-use website that has reinvented the way families manage pocket money. The website makes it easy for parents to develop a regular pocket money routine and helps children to learn about day-to-day saving and spending from an early age via simple tools and fun games.
Roosterbank encourages children to take responsibility for their own money, preparing them for the day when they open their own bank accounts.
Pocket money on Roosterbank is virtual so no real cash deposits are required. Parents use the site to keep track of pocket money transactions, set up regular weekly pocket money payments, make ad hoc 'boosts' and approve spending. Children can spend their pocket money online, in the carefully-curated Rooster Shop that is designed with them in mind, or in traditional retail environments.
Via a personal online account, children can view their balance and make decisions about what to do with their pocket money. That may be saving for the future, for which they are rewarded, donating to charity or building a nest egg to pay for a favourite treat. Roosterbank also provides exclusive access to educational games and two safe communities designed especially for young savers.