Parents Should Give Children Pocket Money To Teach Financial Independence

11/09/2014 13:08 | Updated 20 May 2015

Give kids more pocket money to teach them financial independence, parents urged

A new survey says 15-year-olds in the UK receive an average of £12 a week pocket money - less than half the pocket money of children in Italy and Austria.

In Austria the average is a whopping £35.50, Italy is £30 and Germany is £20.

However, British parents are more generous in their children's early years, according to the study by bank ING.

A British child under the age of five receives a weekly allowance of £2.50 on average, whereas a German four-year-old can expect to receive just £1. Under-fives living in Holland receive just 50p a week, while under-fives in Italy receive an average of £5.

British five to 15-year-olds get £6 a week on average, leaving them better rewarded than children of the same age living in Holland (£1.50 to £5) and Poland (£2.25 to £4.75).

Overall, Britons give their children less money than parents in France, Germany, Spain and Italy.

Adults who received pocket money as a child were better able to save for retirement, according to the survey of more than 12,000 people by the bank ING. It said that 55 per cent of people who received pocket money as a child were able to regularly add to their savings, whereas just 45 per cent of people who didn't receive pocket money did so.

Ian Bright, senior economist at ING, said pocket money helped to prepare children for financial independence.

He said: "Allowing children some element of financial control may be one way to help them realise the value of money and build basic budgeting skills."

How much pocket money do you give your children?

My Teen Is Costing Me a Fortune


Suggest a correction