No Pocket Money for More Than a Quarter of Aussie Kids
“New FPA research reveals average pocket money for kids aged 4-18 years old”
One in seven lucky teenagers get $40 or more of pocket money each week, according to new research released by the Financial Planning Association (FPA) of Australia this Financial Planning Week.
The “Share the Dream: raising the Invisible-Money Generation” report, found that more than a quarter of Aussie kids (28%) do not get any pocket money at all. This is true for 35% of 4-8 year-olds, 20% of 9-13 year-olds, and 27% of 14-18 year-olds.
Of those that do get pocket money,
- Young children (4-8) are most likely to get under $10 per week (49%).
- Tweens (9-13) are most likely to get between $5 and $19 (55%), and
- Older teenagers (14-18) are most likely to get between $10 and $39 per week (46%).
- One in seven teenagers (aged 14-18) get $40 or more each week.
Do kids save or spend their pocket money?
Parents state that children are just as likely to save their pocket money for no particular reason (36%) as they are to spend it on small, day to day purchases (36%). The remaining quarter (28%) are diligent in saving their pocket money to buy larger monthly, quarterly, or yearly items.
Invisible-Money Generation buys online
One of the many fascinating insights from the FPA “Share the Dream” research report released this week, included the fact that children born after the year 2000 are shifting their buying preferences to the digital and online world.
While three in five parents (62%) say their children still show a greater preference for buying tangible items (such as lollies, a bike, clothes, etc.), a remarkable 38% say their children have a greater preference for online purchases such as apps, games, movies, or experiences.
This is a significant shift in the spending behaviours of the generation the FPA is calling the “Invisible-Money Generation” that includes anyone born after the year 2000.
Invisible-Money Generation interacting with money
On top of revealing spending behaviours, the report also uncovered earning patterns of Aussie teens aged 14-18. Interestingly, teenagers who have more conversations with their parents about money are more likely to have a job.
Employed teens aged 14-18 are more financially prepared for the future, and according to their parents, transact with digital money more frequently, are three times more likely to show an interest in tax and five times more likely to show an interest in superannuation than their unemployed peers.
The FPA has created a new, engaging resource for parents who want to raise financial literate kids but may not know where to start. Download the free eBook by heading online.