The average pocket money rate for some families has finally hit the £1,000 a year level, according to a poll of 11,000 parents. This puts it only just below gas and electricity bills in a family's expenditure.
The average amount given to 12 to 18-year olds who buy their own clothes is £19.77 a week, which equates to £1,028 a year.
Those whose clothes are bought for them get a typical sum of £9.50 a week (£494 a year). Meanwhile those 12 years old or younger get, on average, £3.30 a week (£172 a year).
However only 65% of parents with children under 18 regularly give their offspring pocket money.
A quarter of kids don't get a regular income at all while the remainder either get handouts based on chores completed or via a job.
Of the 7,605 MoneySavingExpert.com poll respondents who have children of any age under 18:
- 1,915 (25%) don't give regular pocket money
- 587 (7%) only give pocket money if chores are completed
- 124 (2%) have teens who do work to get their pocket money
- 1,614 (21%) give up to £2.50 a week (£130 a year)
- 2,687 (35%) get between £2.51 and £12.50 a week (£130 and £650 a year)
- 678 (9%) get over £12.50 a week (£650 a year)
See the pocket money poll results for a complete breakdown.
Martin Lewis, MoneySavingExpert.com creator, says: "With income of £1,000 a year some teens are now serious consumers. Used right, pocket money is a great tool for teaching the fundamentals of how to budget, when to save or spend, and making sure you get the best value for things.
"Yet how it's given can make a big difference. Just doling it out each week for no reason is 'trust fund teaching', creating a culture of automatic entitlement. Far better is to give the money as a reward for tasks done.
"But even then beware not to award for things that are expected anyway, such as cleaning bedrooms. Rather reward for tasks which benefit the whole family."
Further reading/Key links
Financial education for children: Teen Cash Class, EMA