New research has revealed more than a quarter of children under 12 have no experience with money.
According to statistics from the Financial Services Compensation Scheme (FSCS), one in four (27 per cent) parents of children under 12 years old do not give their children pocket money or financial rewards for carrying out household chores.
In the South East, less than half (47 per cent) of parents give their child regular pocket money.
The most common chores to offer children money/financial incentives for are: cleaning their room (49 per cent), setting/clearing the table (31 per cent) and washing the dishes (24 per cent).
Even if they do offer their child a small income, parents appear reluctant to give their children full financial freedom.
These parents tend to influence what their children spend their pocket money on because they either think they will buy something they don’t need or just spend it on sweets and chocolate.
This explains why close to a third of parents admit they tend to influence what their child buys with their pocket money and 24 per cent encourage them to save for a larger purchase.
The majority of parents interviewed (79 per cent) agreed that if children engage with money from a young age, this helps them to learn and appreciate its value – with 48 per cent suggesting this experience will mean their children will be better with money in future.
Mark Oakes, Head of Communications at FSCS, said: “Being good with money is a skill that needs to be learned and practiced. It is a parent’s choice how they want to get their child thinking about money, but giving them a little sum of their own to manage is a great way to start.
“They aren’t going to get it right every time, but children need to be given the opportunity to make their own mistakes and learn for themselves.”
Kalpana Fitzpatrick, financial journalist, said: “It’s important that we teach our children about money from a young age so they have the right skills and confidence for the future. Giving your children the same amount of pocket money each week is a great way to teach them how to budget, as they know how much they’re going to get and when — and how long this is likely to last.”
In addition to the research, FSCS has also produced videos and features containing top tips for parents on how to engage children with money. For more information, visit www.protected.fscs.org.uk/
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