Parents pay children less pocket money because of recession

One in four parents has cut the amount of pocket money they give their children as a direct result of the recession, a survey suggests today. The average child, aged between four and 15, gets £5.80 pocket money a week, but 24% of parents admit they have reduced the amount they give their children following the downturn, according to research by Tesco Bank. The report, entitled Every Little Helpers, reveals youngsters also have to do more to help their cash-strapped families in return for a regular allowance. Seven out of 10 parents expect their children to help around the house in exchange for cash, from tidying their own rooms to mowing the lawn. Around 38% of children regularly save the money they receive, with 35% having a savings account and 58% keeping their money in a piggy bank. Children in London get the most pocket money, at an average of £7.81 a week, followed by those in Swansea and Glasgow at £6.68 and £6.46 respectively. At the other end of the scale, children in Wrexham receive only £2.50, while those in Chelmsford get £3.40 and children in Worcester receive around £3.50. Boys typically get more money than girls. They are more than twice as likely as girls to receive between £16 and £20 a week but they are also more likely to spend it in days. The majority of parents surveyed (65%) said they have had the financial equivalent of the "birds and bees" conversation with their offspring, discussing where money comes from and the importance of saving. Dr Elizabeth Kilbey, a child psychologist and mother of three who worked with Tesco Bank on the research, said: "It's great to see so many parents rewarding and reinforcing children's good behaviour with pocket money that they can choose to spend or save. You can never start financial education early enough and this approach is by far the best way to teach children good habits." The survey questioned 2,000 people during March.