Childrens Pocket Money Affected By Financial Uncertainty

By Alison Steed

CHILDREN are starting to feel the pinch from the recession, as one in 15 parents has been forced to slash pocket money payments thanks to the recession.

Mums are more likely than dads to decrease pocket money, with four in five mothers having to bite the bullet and give their children less, compared with three in five fathers, and a third of parents have had to reduce the payments by more than half, according to research by credit reference agency CallCredit.

However, not everyone is in the same boat, as nearly one in six parents have actually increased the amount they give to their children as they believe that their expenditure increases as they get older, and that needs to be reflected in their pocket money.

A quarter of parents are taking inflation into account when assessing how much pocket money should go up. Owen Roberts, head of http://www.callcreditcheck.com/, said: “The effects of the economic slowdown are being felt across all ages.

While some parents may try and shield their children from the economic realities of life, some have clearly had to cut back in a number of areas, including pocket money. “Encouraging children to understand the value of money at an early age is one way of getting them into good financial habits, which will stand them in good stead later in life.”