Baby piggy banks pay a high price price for in cost of life crisis after almost a third of parents cut back on pocket money during last year.
Average amount what goes in pockets of under 16s dropped 23% every week to £4.99. year from £6.48 in 2021, according to research from lender Halifax – the lowest amount since 2001.
UK has highest inflation among the G7 countries, with reaches 40-year high of 9.4% in June in response to rising food and energy prices.
bank last week of England says it expects inflation rise up to 13% by October. He warned of the recession lasts longer than a year because it has raised interest rates for sixth time in a row last a week to tame inflation.
two fifths of parents still give a pocket money to their children and third of they expect their offspring to do more around house to earn It.
Bye parents have reduced pocket moneymany told the lender what they were willing to do changes to their lifestyle to do sure they can still be higher up their children means.
Half of parents say they will donate expenses on their own leisure activities, such as going to the pub or eating out, or giving up purchases such as cosmetics and designer goods (45%). Just over two-fifths said they would stop spending on own hobbies and quarter would spend less on weekly supermarket shop.
Emma Abrahams, lender head of economy said: “As household spending continues to rise a bit parents have to make difficult choices as they adapt to the conditions in which they face – from cutting down in family bill for groceries, to pass on date or somethingwanted private purchase in shops”.
Children spend their pocket money on video games and sweets (both at 39%), followed by toys (30%), clothes (29%) and hobbies, for examples of books (28%).
Only the fifth of parents (22%) say they children likely to save your pocket money.
Halifax interviewed 629 parents of children aged eight to 15 years in June.
In 1987, when the creditor undertook first pocket money interview, children got average of £1.17 every week. amount remained relatively stable throughout the 1990s and then doubled between 1998 and 2000. money followed his example, but fell during financial crisis, from £8.01 in 2007 to £6.13 in 2008. By 2019 it rose to £7.71 before falling back again during the pandemic up to £7.55 in 2020 and £6.48 in 2021.
Chris Payne father of a six-year-old man and triplets (four-year-old girls), said: “How parent of four and running full-time in emergency services sector financial planning is important for us – and part of it how large pocket money we give our children.
“Like others, we bear the brunt of of rising costs, which means adjusting our lifestyle to accommodate new ways of life, but we have not changed the approach to pocket money”.
Abrahams said: “We know finances can cause anxiety for households. Pocket money it’s a luxury that only a few can afford. parents can offer their children as well as, for a lot, it’s impossible option. Open and honest conversation with your children about what you can afford give can improve their understanding and relationships with finance in in future”.