Third Of Parents 'Use Online Banking To Pay Pocket Money'

Third Of Parents 'Use Online Banking To Pay Pocket Money'

Pocket money being handed out in cash is a dying tradition; with parents now using digital means to pay their children's allowance.

So says new research from digital banking software firm Intelligent Environments, whose latest study has found that a third of parents (34%) are now using online banking to pay pocket money into their children's bank account, rather than give them cash.

Just over a quarter (28%) said they go even further and pay their children in the digital currencies used in games such as Minecraft or Moshi Monsters, as well as credit for use on iTunes.

David Webber, managing director at Intelligent Environments, said: "There's a terrific clip on YouTube of a baby trying to use a magazine as an iPad, truly evidence of digital engagement at a young age.

"Nothing has changed more than the way in which we manage our money; our research shows that in a world of apps, e-books, digital music, and online games, more children than ever are asking for their weekly allowance digitally to fuel modern-day spending such as in-app purchases, in-game currency and digital music downloads.

"In addition, we at Intelligent Environments believe that in an increasingly cashless society, more should be done by banks to give young children access to digital personal financial management tools."

The firm has called on more banks to provide accounts for children, pointing to their research, which found that 80% of parents have introduced money management to their children as they believe it is a valuable life skill.

"We share parents' views that learning the power of spending and the value of saving from a young age provides children with valuable life skills that will take them far," said Mr Webber.

"Banks should be appealing to the younger generation by providing access to current accounts for the under-sevens, instead of waiting until they are 11 years old. Digital financial management tools can help children understand and appreciate the value of money at a crucial early age."

Close

What's Hot