Annual NatWest Rooster Money Pocket Money Index reveals industrious kids are working harder than ever as generous parents increase rewards for chores

The annual bellwether of the UK’s Kid’s Economy, the NatWest Rooster Money Pocket Money Index, shows that pocket money is evolving for a new generation of entrepreneurial, hardworking kids and their savvy parents.

New findings from the 2025 Pocket Money Index, analysing data from over 350,000 Rooster Card users, show that kids are building their understanding and confidence around saving, earning and spending with regular goal setting and a variety of income streams. While overall income has fallen by 1% to £9.13 a week, parents are stepping up and rewarding more for chores and hard work.

While those that receive income from regular pocket money as part of a routine have seen an increase of 1.85% since 2023, with kids being paid an average £3.85 per week, fewer parents have set up a weekly pocket money payment. Since 2023, the percentage of parents giving regular pocket money has fallen to 27.40%, a 1.8% decrease as parents demonstrate a continued shift in how pocket money is issued – favouring ad hoc rewards for things like chores and boosts around special events like birthdays.

Throughout the year, kids received on average an annual income of £474.76 (£9.13 per week) from a combination of regular pocket money, chores, boosts, and rewards, down 1% from last year. This more flexible, ad hoc approach to pocket money continues to grow in popularity – despite the traditional weekly allowance approach offering a ‘set and forget’ opportunity for parents.

A quarter (27.4%) of families have a regular pocket money allowance set up, with kids being paid £3.85 on average as part of a routine. And of these families with a fixed routine, over a third (34.8%) make pocket money payments a key incentive for getting chores done. Once again, Saturday is the most popular pocket money payday, favoured by almost half of families (45%).

Additionally, the data shows that age is a clear factor in how much regular pocket money kids are given. 17-year-olds enjoy the highest weekly pay cheque at an average £8.31 a week – though this has decreased slightly, at 11p less than last year. Meanwhile, six-year-olds’ average pocket money comes in at £2.81 a week – a 6p improvement on last year.

The findings show kids on average are spending more and saving less, as sticky inflation continues to rack up prices. Overall, kids managed to set aside £30.38 of their annual income on average over the year, which shows savings as a percentage of annual income have fallen by 33% since last year and almost half (48%) since 2022.

Age factors into kids’ savings significantly, with older kids tending to spend more of their income, in turn, resulting in less being saved. Whereas their younger counterparts are more inclined to save, with six-year-olds still having on average 31.4% of their income stashed away at the end of the year.

Although older kids save less than their younger counterparts, they’re continuing to demonstrate great money skills by setting goals and completing chores to work towards their wants and needs. Practicing these healthy money habits regularly all helps towards building their money confidence and gaining that extra independence.

Yet despite facing a tricky economy, kids continue to demonstrate budgeting skills, making sure to put their money aside for the things they really want. 54% of savings through the year were put into pots for specific goals, such as saving up to buy a computer game, or for an upcoming holiday.

In fact, gaming continues to dominate kids’ wishlists as the number one category kids are saving for. Meanwhile, savings for holidays and travel have increased by 6.8% and sports has increased by 1.8%, suggesting kids are spending more time and money on physical activities and having fun outside.

In terms of where kids spent the most money overall, Amazon, which held the top spot last year, is now placed 7th in the rankings. Meanwhile, Tesco moved up the rankings and replaced Amazon as the brand with both the highest number of transactions and the most money spent overall.

Although kids’ overall income – which includes pocket money as well as payments for additional chores, and one-off rewards – has fallen since last year, parents are generously upping the price for chores, incentivising kids to work harder and earn more.

For example, kids are earning 7p more (7.2%) for walking the dog, 21p more (6.1%) for mowing the lawn, 9p more (8.9%) for mopping, and 8p more (2.5%) for washing the car, compared to last year. Additionally, parents are recognising achievements in school, with kids being paid 50p more for a good school report, compared with the year before.

The data also shows that tooth fairy visits are beating inflation as the price for a lost tooth has increased by 5.25% to £4.21.

Despite their income being down 1% and savings being stretched, kids are still putting in the effort to give back to charitable causes that matter the most to them. For another year running, the most donations went to cancer research and medical charities, followed by animal welfare and environmental causes.

Charities related to homelessness, poverty and social services received the most generous donations, averaging £4.80 per child.

Footnotes

1. ONS consumer price inflation, UK: February 2025