CASH-STRAPPED parents in Sheffield can tighten the pocket money purse-strings at last.
A new report by city academics has shown children who are given weekly allowances without having to do chores are more likely to spend every single penny.
Yet in contrast, youngsters who earn their cash rather than simply being given it are the bigger savers.
Setting the table in return for spends, for example, could even lead to a healthy bank balance in adulthood, as the study found youngsters’ saving behaviour can impact on later life.
“Different sources of cash have different effects on saving in children,” said economics professor Sarah Brown, who co-authored the report with University of Sheffield colleague Prof Karl Taylor.
“For allowances with no strings attached it is less likely the child will save money.
“However where children earn money, from babysitting or cleaning up, they are more likely to save it.
“And if an individual saves as a child they are more likely to save on a regular basis as an adult.”
Star readers agreed. Mum-of-three Lisa Garretty, of Oughtibridge, said: “My children are 15, 14 and nine and they have levels of pocket money at £4, £3 and £2 a week.
“But they have different jobs to do and the oldest has more jobs, like unloading the dishwasher, setting the table and putting the bins out.
“They aren’t big shoppers so the money does accumulate. I would like to think they learn the value of money because they do the chores.”
Teacher Julia Hope-Gill, of Dore, added: “My son Luke is nine and he gets £1 a week - we do try to encourage him to save.
“We both had Saturday jobs so we talk about that for when he is older.
“I think that is really important.”
Dad-of-three David Winterbottom, of Sothall, said: “I give my boys so much a week, about £5.
“They all save it up for things like football shirts.”
The report, published by the Royal Economic Society, was created using data from the annual British Household Panel Survey.
Responses from more than 3,000 children were analysed as part of a wider household finances project.
Sarah Wood, 31, Wadsley Bridge
“I think pocket money is a good idea, it makes kids value the meaning of money.”
Stephanie Parry, 24, Walkley
“I think it gives children independence, so it’s a good idea to give them pocket money.”
Andrew Reid, 28, Walkley
“Pocket money gives children financial independence and shows them how finite money can be.”
Matt Stephenson, 29, Gleadless
“It’s only a good idea if they earn it through doing chores, otherwise it doesn’t hold any value.”
What you’ve been saying online:
“My kids don’t have pocket money. Instead they get things as and when they need them, if we can afford them. That way they learn that money isn’t endless and it all has to be accounted for. Sometimes things just can’t get what you want. It’s an invaluable lesson.”
“I’ve got two children aged four and six. They have to do little chores because they’re only young, such as helping to keep their bedroom tidy, and picking up their things in the lounge. They get £3 each a week and extra if they’ve done anything extra well and they get some from their grandma too. The money goes in their money jar and if there’s something they really want they save for it. I think it’s important to teach these kinds of skills when they are young.”
“My kids do household stuff and get paid for doing so but at the end of the day it’s up to them what they spend it on.”
“My children do household chores, £1 per chore, plus I make them save their money for our days out or our main holiday.”
“It’s almost irrelevant as children growing up now will come into a jobs market where pay will be barely enough to survive, never mind save.”
Joella on Twitter:
“If the child sees parents work hard to give them money and have a nice home they too will work hard. It’s all about how they are raised.”
What do you think about the issue of pocket money? Email: email@example.com