- The average pocket money of UK children increased by an astonishing 10.69%, surpassing both inflation and wage growth.
- Six-year-olds experienced the most significant yearly increase in pocket money, seeing their weekly allowances rise by 34.5%.
- Despite the ongoing economic crisis, British children manage to supplement their pocket money by selling old clothes, toys, and offering services like babysitting and tutoring.
Despite the existing economic tension in the United Kingdom, the younger generation is seeing a silver lining. Recent findings show that the allowances, colloquially referred to as "pocket money," of British children are rising faster than both inflation and wage growth, giving these youngsters a reason for optimism.
According to NatWest Rooster Money’s pocket money index, the past year has witnessed an unprecedented 10.69% increase in the average allowance, a rate that surprisingly exceeds the inflationary rise of 10.4%. Consequently, British children are now receiving an annual pocket money of £333.84 ($415.08), an increase of £32.24 compared to the previous year. This rise translates to an average weekly pocket money of £6.42 (approximately $8), a £0.62 hike from the previous year.
Remarkably, six-year-olds enjoyed the most significant yearly increase, receiving a weekly allowance that is 34.5% higher than the previous year. Now, they are collecting £3.94 per week, up from £2.93. Conversely, fifteen-year-olds were the only age group to witness a decrease in their pocket money, with a drop to £9.72 from £9.72 per week. Nevertheless, the highest earners were the 16-year-olds who received £12.75 per week, slightly above the £12.59 weekly average for 17-year-olds.
In spite of these encouraging developments, the current cost-of-living crisis presents challenges. NatWest Rooster Money CEO Will Carmichael acknowledges that many households are struggling to maintain regular weekly pocket money in the face of rising prices. Still, there is a resilient commitment among families to shield children from these economic pressures.
The report also provides a fascinating insight into the supplemental income British children receive. On top of their allowances, children in the UK earn additional cash through various means, such as reselling their clothes and toys, babysitting, and even tutoring. Moreover, these diligent young savers are also found to reserve about 8% of their income, contributing to a substantial collective saving of over £265 million across six- to seventeen-year-olds.
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