U.K. Kids’ Allowances Fall to 7-Year Low

ADVERTISEMENT

New research shows that weekly “pocket money” for British children has dropped to its lowest level since 2003.

The study by Halifax, part of Lloyd’s Banking Group, found a precipitous drop in weekly allowances for children age 8 to 15. After peaking at £8.37 (around $13) a week in 2005, the global recession drove weekly allowances down to £6.23 ($9.67) in 2009 and £5.89 ($9.14) this year.

It’s not all bad news for the young ones, though. Despite the drop in wages, most of the children seem to be keeping calm and carrying on, with 49% saying they get the right amount of pocket money. And the gender pay gap – yes, children apparently have a pay gap, too – has fallen, with boys making just 40 pence more than girls after the data showed a gap of more than £1 ($1.55) in 2009.

Despite the drop in pay, children seem more inclined to stimulate the economy through spending; only 23% save at least half of their pocket money, down from 49% in 2009. Still, 77% indicated they were interested in learning more about saving their money, so perhaps there’s still hope for the piggy banks of England (or whatever animal they put their money in over there).

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Show Comments

Back to Top