Are you wondering how much pocket money to give your child? Whether their savings are up to scratch or how their spending habits compare to other kids? Well, you’ve come to the right place. In this article we cover everything you need to know from our latest Pocket Money Index.
The Pocket Money Index is our in-depth research report into the financial habits of over 300,000 Rooster Money kids. Every year we use our data to identify the latest trends and changes in how they earn, spend, and save their pocket money.
Despite the pressures in the wider economy Rooster Money kids are still earning an annual income equivalent to £479.96 – consistent with their take home pay of £478.40 last year. While their income may be flat year on year – how they earn it is changing – a sign that the pocket money pay-out many of us parents will remember from childhood is changing shape for the modern world.
Now, only 14% of kids’ overall income comes in the form of a regular pocket money allowance – at a weekly rate of £3.78 (down 3% from last year’s £3.88). The rest is made up of ad hoc top ups linked to rewards for things like making good progress at school, completing extra chores, or even starting their own side hustle, bringing the overall weekly income (regular pocket money plus top ups and extra earners) to £9.23.
Pocket money trends are showing that it pays to get older as weekly earnings go up by the age range. When it comes to a regular allowance, 17-year-olds enjoy the highest weekly pay cheque at £8.42. Meanwhile, six-year-olds – the youngest of the Rooster kids in the Pocket Money Index – are fetching the lowest pay at just £2.75 a week.
Kids’ regular pocket money earnings per week can be found below. This is the amount that parents will often set in the app to be paid weekly or monthly, either on the condition of doing chores or simply as part of a regular allowance.
Kids overall income, which includes payments for doing extra chores and one-off rewards and treats follows a similar pattern, rising steadily as kids get older – starting at £5.68 per week for six-year-olds and going up to £24.71 for 17-year-olds, as the spending power of kids increases to support their teen routines.
With regular allowances becoming less popular, kids are working hard to earn a good chunk of
their money by taking on extra chores and responsibilities. Amongst the top five chores, making the bed is the most completed this year, meanwhile mowing the lawn pays best, coming in at an average of £3.47 per job.
As well as capitalising on chores, today’s kids are showing a good measure of entrepreneurial spirit too. Side hustles such as reselling possessions, tutoring, babysitting and paper rounds are amongst the top entrepreneurial earners of 2023/24.
Kids are also being rewarded for their education, getting £15.61 for a good report, £35.43 for good exam results and £8.68 for winning a school award.
Despite getting less regular pocket money and the rising cost of living impacting families, kids are still saving a decent amount of their income, with the average child setting aside a whooping 9.5% of their income in 2023/24, equivalent to £45.60 per year. Kids are also saving their money in a way that suits them. Just under half of savings were placed into basic pots to help categorise it, while 55% was assigned to measurable goals for kids to achieve. Go Team!
Top of the savings wish list are items related to gaming – everything from PlayStation 5s and Xboxes to currencies such as Robux and Minecoins; followed by putting money aside for holidays – whether that’s the beaches of Cornwall or far flung locations like Ecuador; as well as saving for the future – from ISAs to housing deposits.
The savings calendar sees its fluctuations with kids’ being prompted to save at different times of the year. The most popular month for first savings deposits is December as kids put money aside following gifts from loved ones. January follows in second place, maintaining the momentum of the festive period. The summer months however, tend to drive less savings, likely as kids’ minds turn to getting out and about.
When it comes to spending their pocket money, supermarkets and grocery stores are the most frequented, with Co-op, Tesco and McDonalds being the three most popular brands amongst Rooster kids with Apple, Sainsbury’s and PlayStation not far behind.
In terms of how much they spent – then Amazon maintained its top spot as the brand kids spent the most on, and SHEIN made an appearance in the 10th most popular place to spend money.
Kids aren’t just spending, though: they are also giving back with their pocket money. The most donations went to cancer research and medical charities followed by those working with animals; with development and poverty being the third most popular charities. Rooster kids’ generosity is admirable as they clearly see a benefit in helping others; their awareness of the current world issues is inspiring.
The data above is compiled from our 2023/2024 Pocket Money Index research report.