Despite a decline in regular allowances, NatWest estimates an 11% growth in British children’s average annual income to £6.42 per week in 2022–2023. Learn about UK kids’ finances.
Despite a decline in the percentage of children receiving a regular allowance (from 65% in 2021–2022 to 57% in 2022–2023), NatWest reports that the average yearly income for British children climbed by 11% in 2022–2023 and now stands at £6.42 per week.
The majority of people in the UK have been compelled by the cost-of-living problem to reconsider their spending patterns and monitor their financial accounts. Because of this, NatWest Rooster Money has discovered that fewer children are regularly receiving pocket money. Instead, parents are choosing to be more generous in one-time payments (which accounted for 39% of wages in 2022–23, up from 34% in 2021/22) at special events and when their children behave well.
These conclusions are based on the most recent Rooster Money Pocket Money Index from NatWest, a yearly research of more than 125,000 kids that examines the UK youth economy and seeks to identify the trends influencing young people’s finances.
Many people would anticipate that pocket money would increase with age, but in 2022–2023, 16–year–olds received the highest weekly paycheck of £12.75. Young adults aged 17 received a somewhat reduced take-home pay of £12.59, possibly as a result of the introduction of growing financial independence. In reality, six-year-olds experienced the largest salary increase overall, growing by 34% year over year to reach £3.94 a week.
Entrepreneurial children, on the other hand, appear to have turned more to side jobs to maintain a consistent flow of revenue; those who do raise an average of £50.84 per outside of chores (16% more than they did in 2021/22). The average pay for babysitting increased by 24% to £20.55, the average revenue from selling items like clothing increased by 6% to $26.26, and the average pay for tutoring increased by 102% to £16.95.
Considering the future
Additionally, NatWest uncovered patterns that can indicate how the following generation will spend in the future. The most well-liked locations to spend money in 2022–2023 were dominated by brands with a physical presence. The top five included companies like Co-op, Tesco, McDonald’s, and Sainsbury’s, while digital companies like Amazon, PlayStation, and Xbox dropped in the ranks from previous years.
Additionally, public transportation increased to number seven, indicating that following the covid epidemic, people are resuming their normal routines.
NatWest Rooster Money CEO and creator Will Carmichael stated: “Kids this year have been incredibly enterprising and proactive despite having less regular pocket money. This is true in the most literal sense, not only because of the increasing side-hustle income, but also because of the business-minded approach to household income they’re adopting, managing to monetize not only duties but also things like learning and personal growth. When I was a kid, I most definitely wasn’t compensated for doing my schoolwork!
“Every year I’m inspired to see the creativity and ambition of these young people and how engaged families are with pocket money and earning, despite times being tough, which can only be a positive sign for the future.”
