Pocket money appears to be going out of fashion with children turning to side hustles to secure an income, new research has found. According to analysis of customer data by NatWest and its youth debit card provider Rooster, the average weekly allowance sits at £3.78 - 3% (10p) down year-on-year.
The number of kids getting a regular stipend has also dropped from 32% to 30%, the findings showed. But the data revealed that youngsters have been turning to other income streams, with chores and entrepreneurship proving to be more lucrative than last year. It means a typical child is now pocketing £479.
96 a year (£9.23 a week), with weekly earnings ranging from £5.68 for a six-year-old to £24.
71 for a 17-year-old. These figures are broadly flat against the year. It comes as families have battled through two years of soaring inflation , which has brought about the worst cost of living crisis in a generation.
The rate of price hikes remains above the Bank of England ’s 2% target, but earnings have been making up for some of the erosion of the value of the pounds in our pockets. We will find out how high inflation was in April later this week . Despite these financial pressures, children have been good at locking their cash away in their piggy banks.
Their savings rate sits at an average of 9.5% (£45.60) a year.
MoneyWeek has rounded up the best child bank accounts , and has also put together advice on junior ISAs . Average pocket money income just a ‘small fraction’ of kid.
