Australian children are being given the best part of $1000 in pocket money every year, but it’s not as much as what previous generations were handed.
New research from ING shows today’s kids receive an average of $750 a year as parents try to instil good saving habits.
“It’s still taboo for many people, but we know that future generations can learn so much from our own life and money experiences – the good, the bad and the ugly,” ING head of consumer and market insights Matt Bowen said.
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“Our customer research suggests that starting the pocket money conversations earlier may help with their money habits over the long term, with eight in 10 Aussies saying their parents taught them how to save.”
How much children are given varies by age, with five- to seven-year-olds getting $6.50 a week, eight-to-10-year-olds $10.30, 11-to-15-year-olds $15.60 and 16-to-18-year-olds $22.70 on average.
It’s also changed over the years.
While Generations Z, Alpha and Millennials have all received between $11 and $12 a week, ING says Gen X and Baby Boomers were given $9.90 and $3.40 a week respectively.
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That might seem like Boomers copped a bit of a raw deal from their parents, but, when inflation is accounted for, it was actually anything but.
If a Baby Boomer born midway through the generation was getting $3.40 a week in their early teens, that seemingly miserly amount would have been worth a whopping $50 in 2023 dollars.
An equivalent Generation X teen’s pocket money would have been worth about $33 in modern currency, while Millennials and Gen Z come in closer to $20 and $15 respectively.
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“What is important is to remember is that every household will be different,” Bowen said.
“Parents and kids should have a conversation and try to find an amount that everyone agrees is fair, based on the chores or support kids will do.”
The other thing that’s changed is how kids are receiving their savings as more and more consumers use card payments and don’t carry cash.
“Like most Aussie kids, I had a money box when I was growing up, where I’d store pocket money, change found in the cracks of the sofa, or birthday money from grandma,” Bowen said.
“Whilst many households do still give their kids cash, there are now numerous digital options available.
“One of the benefits of a digital economy is the speed of our spending and savings behaviour,” he added.
With the growth of a digital economy comes different ways of learning to budget, like the concept of “gamifying” money.
“We did some research in June this year about Aussie gamers and how gaming plays a role in money skills, and almost two in five said digital games positively influenced their current saving habits.”
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