Between money for chores and Revolut transfers, families who prefer the ‘traditional’ pocket money routine are plummeting.
According to a new Rooster Money report by NatWest, just 30% of families “commit to a traditional pocket money routine”.
Within that 30%, children aged between six and 17 receive an average of £3.78 (€4.42) a week, a drop of £0.10 (€0.12) in the last year.
These children, however, are “proving their resilience” through “side hustles” and money from chores, bringing their overall weekly earnings to £9.23 to £480 (€10.80 to €561.56) per year.
According to NatWest, these earnings from children could be the equivalent of an economy worth £4.6 billion (€5.4 billion).
Revolut replaces pocket money
Presenter Jonathan Healy suggested a third revenue generator for children beyond pocket money – Revolut.
“The modern equivalent [of pocket money] is, ‘Can I have €2 on Revolut?’,” he told Newstalk Breakfast.
“I’m sure there are parents listening who share my pain – it'll be, ‘I don’t want a fiver [a week], I just want a euro [every day]’.
“You’re sitting there doing it every single day, you could time it on a watch.”
Children learning how to save
Presenter Shane Coleman said the drop in pocket money is a shame as allowances allow children to learn how to budget and save.
According to NatWest, however, the savings rate among children and teenagers remains strong.
Despite getting slightly less pocket money, children saved £45.60 (€54.53) last year – equivalent to 9.5% of their annual ‘income’, putting them at the same savings levels as their parents.
The report said these savings would amount to a total of £432 million (€506 million) a year.
Some 55% of children have ‘measurable goals’ for their savings, such as €1 a week, while 45% have a basic “pot” they add to when they can.
The most popular reason for saving last year was gaming, with a 165% increase in savings pots for gaming currencies.
The report’s findings are based on data drawn from more than 300,000 children aged between six and 17 who use the NatWest Rooster Money pocket money app and prepaid card.
