Research indicates Aussie kids are earning more than ever with an almost 50% increase in the amount of cash being handed over by parents as pocket money since 2013.
The Heritage Bank 2015 Australian Pocket Money Survey, released today, asked parents from all over Australia to give insight into the pocket money dealings within their families – uncovering some interesting shifts in how pocket money is being managed.
While kids’ pockets are being hit with extra cash, the survey uncovered putting money away for savings is now the number one use for pocket money by Aussie kids – taking over from buying toys and lollies.
Heritage Bank CEO Mr John Minz said while it’s promising to see kids are saving more than ever, it’s concerning to see a drop off in the number of kids having their own savings account.
“We’ve seen a 4% decrease in kids across Australia having their own savings account and that’s a worry,” Mr Minz said.
“Giving children their own savings account is an important part of building financial confidence and helps them understand how saving money works.
“The opportunity to experience opening an account, depositing, withdrawing and earning interest on pocket money is priceless and helps to benefit children as they begin their life-long financial journey.
“Almost half of parents surveyed believe the way their children receive and use pocket money has a direct impact on their relationship with money,” he said.
“With this in mind, it’s more important than ever for parents to give their kids the opportunity to have their own savings account and benefit from the opportunities it can offer.”
While parents might be feeling a bit lighter in the hip pocket after pay day, it’s not all bad news, with research indicating Aussie kids are working harder than ever for their money.
A steep increase in chore completion across all areas of cleaning, gardening, bed making and pet care spells good news for parents who can rejoice at the extra help around the house.
Gender pay gap still remains
While the pay gap between boys and girls remains, the survey also uncovered there’s more to the pay gap amongst kids than gender.
The average Aussie child is earning $11.30 per week, with Queensland children earning less at $9.20 – well below their NSW cousins who are sitting pretty at $13.50 a week – a difference of $200 a year (1,428 blocks in Lego terms).
And the pay gap isn’t just between states – kids in regional areas earn, on average, $4 less per week than their city peers.
Customer research analyst Kathryn Plevey explained the pocket money pay gap between states and rural/ metro placement could be a direct flow on effect from the cost of living in these areas and the average household income in each.
Want to find out what kids across Australia are earning and how families are dishing out the money? Visit our blog to view the results of the Heritage Bank 2015 Australian Pocket Money Survey.