Two thirds of children are doing household chores in order to earn their pocket money, according to new research from Halifax.
It shows that 65% of youngsters aged between eight and 15 are working for their money by doing a number of simple household tasks.
This is having a positive impact on their understanding of finances too, as awareness of the value of money is improving.
Helping out around the house
Keeping their bedroom tidy was the most common task for children to undertake, with 42% of them doing so in order to earn their pocket money.
A quarter of children help with the washing up, while a number of tasks were left to parents – only 3% of children do some ironing while only 4% help with making dinner.
More girls than boys tended to get pocket money for helping out at home, with 45% (girls) compared to 39% (boys) getting money for keeping their room clean and tidy.
It was a similar situation for washing and cleaning tasks too, while children entering their teens were most likely to have to complete tasks to receive money.
Three quarters of 13-year olds had to earn their extra finances, compared to 65% of ten and eleven-year olds.
Understanding value
Nearly two thirds of all of the children surveyed understood that their parents had to earn money by working – an increase of 4% from a year ago.
Meanwhile 88% of the youngsters understood that their parents went out to work – even 81% of eight-year olds understood this to be the case.
This showcases an increasing awareness of finances, a factor also recognised by parents in the study as 64% of them believed their child understood the value of money.
More than four in five parents was confidence they would be able to teach their children about finances too, sufficiently preparing them for the future.
Introducing pocket money in plastic form
Given the increasing number of children who understand money, one option for parents of those in their teens could be a youth prepaid card.
This could help to increase their understanding of finances, while a number of controls are still in place which mean parents retain control.
Children can access ATMs across the world with a card, while they can also access online stores and music downloads.
Parents can track where any money is spent and it enables a way of understanding how money works without the threat of debt – only cash on the card can be spent and there is no overdraft facility.
Such an option boosts a child’s independence, while ensuring they remain safe from fraudulent activity and any financial issues.
