Children are earning more pocket money

Despite parents feeling the pinch, it seems children are getting more money to contribute to their accounts with the best savings rates.

New research as part of the annual Halifax Pocket Money Survey for 2011 found that the amount of money children receive on average has increased by 36 pence per week.

This is the first increase for seven years and adds a total annual value of £18.72 to each child's pocket money.

Around half of all children are content with the amount of pocket money they receive, while 43 per cent think they should get more.

Flavia Palacios Umana, head of savings products at Halifax, said that the fact children are still receiving an allowance means parents understand the importance of learning about money.

"Teaching children important financial life lessons by using pocket money will quickly give them understanding of basic financial issues and more important the consequences associated with making and spending money," she said.

However, Santander said that children have been hit hardest by inflation and are getting less for their money now.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-08-17 13:08:42 © Moneyextra.com