Kids now grafting for their pocket money as parents feel the pinch

Embargoed until 00:01 on Thursday 13th November 2008: It seems that no-one is escaping the effect of the credit crunch – not even the nation’s under 16s. With families tightening their belts as the cost of living continues to rise, it isn’t surprising that parents are making sure their kids learn about the value of money by working for their pocket money rather than getting free hand-outs.

According to Sheilas’ Wheels home insurance, almost two thirds(1) (63 per cent) of parents pay their kids to help out around the house, from drying the dishes to washing the car. In fact, the vast majority of parents (86 per cent) say getting children to earn their pocket money prepares them for the world of work and life away from home by helping them to build up a knowledge of basic finances from an early age.

In homes across the country, children as young as four are getting paid up to £2 per hour in pocket money for carrying out basic jobs around the house like cleaning their bedrooms (13 per cent), helping mum and dad in the garden (8 per cent), or setting the dinner table (5 per cent).

Children at primary and middle school (aged 5 to 11) are taking on a wider variety of paid-for jobs to boost their pocket money earnings, including dog walking and helping with cooking meals, although they’re also only getting paid £1 to £2 per hour on average.

Older offspring at secondary school (aged up to 16) are likely to carry out more physical or responsible chores like mowing the lawn (8 per cent) and shopping (5 per cent) but they do get paid more per hour at around £3.

The average child is now grafting hard to earn just under £400 a year in pocket money by helping out their parents, with one in seven (14 per cent) kids spending between two and five hours a week doing chores in the home and garden – on top of regular homework.

Children in the South East are most likely (71 per cent) to earn their pocket money by doing odd jobs with 5 per cent of older children in Greater London spending between 5-10 hours a week doing household jobs.

Jacky Brown at Sheilas’ Wheels home insurance, commented:

“Children’s piggy-banks may be filling up across the UK but it seems that pennies are becoming more hard-earned.

Cash-strapped parents are trying to teach their kids the value of money and the importance of saving by ensuring that pocket money is earned rather than simply handed out.

“As purse-strings continue to tighten, families are pulling together as the costs of living soar. Kids are almost turning into a domestic workforce by carrying out chores around the house for their pocket money – giving some families an

inexpensive alternative to professional gardeners and cleaners.”

Notes to Editors:

(1) Sheilas’ Wheels used the independent online research company Online Opinions who surveyed 1,000 of the UK’s parents, from across the country aged 18 plus between 19th – 23rd May 2008.

About Sheilas’ Wheels:

Sheilas’ Wheels was launched in October 2005 to offer women drivers cheaper car insurance and female targeted product enhancements. In February 2008, the brand moved beyond car insurance to also offer home insurance with product enhancements including alternative accommodation (buildings and contents cover) in the event of loss of utilities in the home (terms and conditions apply), new for old cover on clothes (contents cover) and family legal protection cover which also includes assistance in finding emergency registered childminders while the insured person is attending jury service, and legal representation for a customer’s child if they do not gain entry to the school of their choice (terms and conditions apply).

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Tags: Global Credit Crisis, Savings, Sheilas’ Wheels, UK Banks