Children spend £132m per week this holiday
Research from the personal finance education group has revealed that the summer will see children and young people in England deploying a collective spending power of more than £132 million per week.
Summertime brings a peak in spending for children as they enjoy £23 million per week more in disposable income than during the rest of the year, due to increased earnings and pocket money.
According to the research, which was conducted among children aged between seven and 16, more than a third (34 per cent) of young people plan to bring in additional income through paid work or tasks over the summer. Among these children, the most popular money spinners are helping around the house (28 per cent), taking on a paper round (17 per cent) and babysitting (8 per cent).
Young people will also benefit from an increase in pocket money, with almost half (49 per cent) of parents planning to give their children more pocket money during the summer holidays – an average of £1.86 extra per week.
This combination of paid work and pocket money will mean that the average young person in England has £21.45 to spend per week over the summer holidays. The research suggests that young people are planning to spend the majority of this, with only 35 per cent planning to save their earnings.
pfeg, who commissioned the research, is spearheading My Money, an £11.5 million investment by the Department for Children Schools and Families (DCSF) to deliver lessons on money in schools.
Wendy van den Hende, Chief Executive of pfeg, said: “This research highlights that despite the credit crunch, young people will have a high disposable income this summer. It is important that young people are equipped with money management skills from an early age, so they can prioritise their spending and saving. Many will have experienced financial education lessons during My Money Week, and will be able to use this learning to inform their money habits.”
Some of the most popular summer spending items and activities this summer will be sweets / ice cream (58 per cent), going to the cinema (39 per cent), buying computer games (37 per cent), buying clothes (36 per cent), going on holiday (19 per cent) – and (14 per cent) will spend money on family days out.
The research also indicates that young people are likely to be a key barometer of an improving economy. While almost a third of parents (29 per cent) have had to make cuts to their children’s pocket money due to the recession, nearly half (42 per cent) of parents questioned said that they would pass on the financial benefits of an improving economy to their children within a few months.
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