Cost of living impact on pocket money as parents borrow from kids to pay bills and buy food

dailyrecord.co.uk:

New research by Metro Bank shows that while two-thirds (66%) of parents give their children pocket money, more than a quarter (26%) would stop this due to wider financial concerns.

The study suggests that almost half of parents who give pocket money (43%) have been forced to borrow from their children, to pay for supermarket shops (34%), or pay the bills (23%).

Pocket money is a vital part of a child’s early financial awareness, with 43 per cent of parents believing pocket money is useful to teach children about finances, spending and saving, reward them for chores (23%) and support them to buy themselves treats (18%).Metro Bank discovered that children spend their pocket money primarily on food and sweets (43%), going out with friends (33%), toys (31%), saving for more expensive items (33%) and saving for holiday spending (24%).Since the start of the cost of living crisis, a fifth of parents report that their children have started to supplement their pocket money by entering employment (12%) or even creating their own jobs (9%).Metro Bank has partnered with parent, actor and Strictly Come Dancing alumni Will Mellor, to help reinforce the importance of financial education for children.The bank’s Money Zone scheme has brought financial education to 250,000 children across the country by partnering with 2,800 schools.

The scheme will be extended later in the year to include bespoke programmes for armed forces’ communities as well as to teenagers aged 16-18.Commenting on the research Will Mellor said: “Homes across the country are feeling the squeeze.