The cost of living crisis is forcing parents to cut back on the amount of pocket money they give their children - with research showing it now stands at its lowest level in more than 20 years.
Almost one-third of parents say they have cut back on pocket money over the past year, with the average amount going into the pockets of under-16s each week dropping by 23% to £4.99. This compares to £6.48 in 2021, according to research from the lender Halifax. Two-fifths of parents say they give pocket money to their children, with a third of them expecting their offspring to do jobs around the house to earn it.
However, while parents have reduced pocket money, many said that they were prepared to make changes to their lifestyles to continue giving their children money, with half of parents saying they would sacrifice spending on their own leisure, such as going to the pub or eating out, or forgoing purchases such as makeup and designer goods (45%). Just over two-fifths said they would stop spending on their own hobbies, and a quarter would spend less on the weekly supermarket shop.
