This is one lucky younger generation. According to recent research by Halifax, 36% of grandparents hand over pocket money to their grandchildren every week. And it’s a fairly generous amount too — 35% of kids get £4-6 a week, and almost 20% get £10 or more a week. On average, kids get over £6 a week from their grandparents, which is up from £5.45 last year.
Grandparents aren’t the only generous generation. Parents and guardians also give their kids an average of over £7 a week, up from last year’s £6.28, a 13% raise.
How to spend it
While over 20% aren’t saving a penny (up from 18% last year), 43% think they should have even more, the rest are savers. Most have specific goals in mind on how they intend to spend their dosh: computer games (23%), new clothes (27%) and toys (23%). And to make you optimistic about the future — 17% say that they’re saving to buy gifts for other people.
A good way to encourage children to save and spend their money wisely is to open a Go Henry (add link) account for them, which teaches them good habits and incentivises them to do chores (add link to previous blog post).
Grandparents and parents should also consider instilling the savings habit by opening Junior ISAs for their little loved ones. To find DIY investment platforms that offer Junior ISAs or Junior pensions, click here.
Photo by Michael Longmire on Unsplash
