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Kids get €6-a-week pocket money, but most never save it

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Not many kids are saving

Not many kids are saving

Not many kids are saving

A minority of children save their pocket money - with an average of more than €6 given by parents to under-12s every week and just over €10 a week for teenagers, a Bank of Ireland survey shows.

Toys, clothes and food are the top things for kids to spend their pocket money on. Other items that pocket money is spent on are clothes and shoes, followed by console games.

When it comes to putting pocket money aside, 35pc of respondents said their kids save only when they want to buy something specific.

Consoles

Technology items such as tablets, headphones and game consoles are what children mostly save for, followed closely by clothes and shoes and games.

The survey shows that under-12s get an average of €6.40 a week, with the over-12s getting an average of €10.40.

Top ways for children to earn pocket money are doing chores, along with showing consistent good behaviour.

However, almost a third of parents said they do not require anything in return for giving money to their youngsters.

Birthdays are a big earner for children but they also get money as a gift at Christmas, while grandparents are a good source of cash.

The survey was conducted by iReach among 1,000 people, with a majority of them parents.

The head of youth banking at Bank of Ireland, Rory Carty, said the foundations for good financial habits, like any good habits, are laid early in life.

"It's great that children are getting familiar with money from an early age but our research clearly suggests that there is a lot more scope for them to learn important financial wellbeing skills like budgeting and saving."

Financial expert Frank Conway said it was important to make savings relevant, visible and rewarding. He encouraged parents to set goals for their children and track their performance along the way, rewarding them with a little incentive if they meet their target.

Mr Conway said parents should set a goal before setting up a savings account for their children. Setting a money goal will serve as an important motivation throughout the savings journey, he said.