Have you boosted your children’s pocket money allowance this year?
New research shows that one in three Australian children under the age of 12 have received an increase in pocket money in the past 12 months, equivalent to more than 600,000 kids across the country.
More than one in two children (58 per cent) received the same amount as they did the year before, according to Finder’s Parenting Report 2021, while 8 per cent received less.
“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,” Finder money expert Alison Banney said.
“This teaches them the value of hard work and will prepare them for entering the workforce later in life.”
Not all households are created equal, though.
The study found Generation Z parents were most likely to have given their kids an increase, with 47 per cent lifting pocket money over the past 12 months, compared to Millennials (35 per cent) and Gen X parents (29 per cent).
It revealed how Australian kids are cashing in on their parents’ earnings, with nearly half of children under the age of 12 receiving an average weekly allowance of $9.80 across Australia.
A quarter received between $5 and $10 per week, while 8 per cent received between $11 and $20.
A further 7 per cent received more than $30 per week from their parents.
This equates to $1.9 billion in pocket money given to Australia kids every year, Finder found.
The gender pay gap starts with pocket money
The report also revealed a major disparity between the amount of pocket money given to boys and girls.
Girls were found to receive a dollar less in pocket money on average than boys, with a mean allowance of $9.30 a week for girls compared to $10.30 a week for boys.
That’s a difference of $52 a year.
The Finder report also looked at how pocket money differs across five Australian states.
If you live in Victoria, chances are your children receive more pocket money than kids in any other state.
Data shows an average of $12.10 a week in pocket money is paid to Victorian kids, while children in New South Wales receive the next best with $11.35.
Kids were given an average of $9.30 in Western Australia, $6.63 in Queensland and just $4.72 in South Australia.
Ms Banney said pocket money was a good way to instil healthy financial habits in children 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,” she said.
“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 OK to spend some of their money, as long as they’re saving too.”