Pocket money beats inflation, as average rises to £6.42 per week
Pocket money appears to be immune to the cost-of-living crisis, as new data shows children’s earnings are rising more quickly than inflation.
The NatWest Rooster Pocket Money Index found that children earn an average of £6.42 per week, up by 11% from last year. That’s a faster rise than the rate of inflation, which is 10.1%.
However, the portion of children receiving regular pocket money has declined from 65% to 57%, with more parents giving out one-off payments around special occasions instead.
Six-year-olds saw the biggest rise in their pocket money, receiving £3.94 per week, up 34%.
Kids are also boosting their incomes with ‘side hustles’, with pay from non-chore work rising by 16%, including a 24% jump in babysitter pay.
Will Carmichael, CEO and Founder of NatWest Rooster Money, said today’s children are taking a “business-minded approach” to many more aspects of their lives.
“Faced with less regular pocket money, kids have been really entrepreneurial and proactive this year,” he said. “This is true in its purest sense with the soaring proceeds from side hustles, but also in the business-minded approach they’re taking to earning around the house - managing to monetise not just chores but things like learning and personal development. I certainly wasn’t paid for doing my homework as a child.
“Every year I’m inspired to see the creativity and ambition of these young people and how engaged families are with pocket money and earning despite times being tough, which can only be a positive sign for the future.”
The top places where children spent their money included McDonalds, as well as leading supermarkets Tesco and Sainsbury’s.