Pocket pay-raise: Aussie kids receiving $2 billion in allowance each year
Children are cashing in on their parents' earnings, according to new research from Finder.
According to Finder's Parenting Report 2021, which surveyed 1,033 parents of children under 12, nearly half (49%) of children under 12 receive pocket money, with the average weekly allowance sitting at $9.80. This equates to $1.9 billion each year.
The survey revealed 1 in 4 (25%) children receive between $5 and $10 per week, while 8% receive between $11 and $20. A further 7% receive more than $30 per week from their parents.
Alison Banney, Finder money expert, says pocket money is a good way to instill healthy financial habits from an early age.
"These days most of us pay by card or by tapping our phone. This can make it difficult for children to understand the concept of money.
"Pocket money can help children to understand how transactions work and teach them how to save from an early age.
"It's also a good idea to introduce the concept of budgeting to your kids – teach them that it's okay to spend some of their money, as long as they're saving too."
The data shows boys ($10.30) receive more pocket money on average than girls ($9.30) – a weekly difference of $1 per week, or $52 per year, between the genders.
The nation's top-earning children are from Victoria ($12.10), followed by New South Wales ($11.35) and Western Australia ($9.30).
Banney says incrementally increasing your kids' pocket money can also keep them motivated with chores.
"Increasing your child's weekly allowance is just like a salary increase. As they get older and start taking on more household responsibilities, this is a great way to reward them.
"This teaches them the value of hard work and will prepare them for entering the workforce later in life."
The research revealed 1 in 3 (34%) children have received an increase in pocket money in the past 12 months – equivalent to over 600,000 kids.
Meanwhile, 1 in 2 (58%) children are receiving the same amount of pocket money as they were 12 months ago and a further 8% are receiving less.
"As your kids get older and their savings begin to grow, a money management app such as the free Finder app can help them to visualise their money in one place and teach them important budgeting skills.
"If they want to save up for something like a car, the app can help you work out how much they need to be saving weekly to meet their goal," Banney said.
Gen Z parents are the most likely to have given their child a raise in the past year (47%), compared to millennial (35%) and gen X parents (29%).
| Are you giving your child more, less or the same amount of pocket money as 12 months ago? | % |
|---|---|
| The same amount | 58% |
| More | 34% |
| Less | 8% |
| Source: Finder's Parenting Report 2021 of 503 parents of children under the age of 12. Includes only respondents who had previously indicated they give their child(ren) pocket money. |
| State | Average weekly pocket money |
|---|---|
| Victoria | $12.10 |
| New South Wales | $11.35 |
| Western Australia | $9.29 |
| Queensland | $6.36 |
| South Australia | $4.72 |
| Source: Finder's Parenting Report 2021 of 1,033 parents of children under the age of 12 |
Kickstart your kids savings by setting up a savings account for them now.