Aussie kids earning more than ever

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.


* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

Generate a personalised Key Fact Sheet based on your loan amount, term and repayments. This tool is provided to help you compare home loans from Heritage with other financial institutions.