There’s a gender pay gap when it comes to pocket money, with girls receiving more pocket money per week compared to boys, according to finder.com.au.
The finder.com.au survey of 2,006 Australians reveals girls are 6.1% better off than boys.
While girls get an average yearly allowance of $442.52 ($8.51 per week), boys get $417.04 each year ($8.02 per week).
While the average weekly allowance for boys and girls is $8.26 – or $429.52 a year per child –, only three in five children (57%) have to do chores in exchange for their allowance.
Interestingly, parents are most likely to give their eldest child more pocket money than younger siblings even when they reach the same age.
Bessie Hassan, Money Expert at finder.com.au, says first born children get 23% more pocket money on average compared to second born children.
“The eldest child at age eight earns $6.18 per week but this drops to $5.29 if the 8-year old is a second child,” she says.
Ms Hassan says the research shows some parents start paying their children pocket money from as young as two years of age, with the average toddler pocketing $4.70 per week.
“Surprisingly earnings don’t increase in line with age, as the average six-year-old earns more than most 7 and 8-year-olds,” she says.
The most common tasks kids receive pocket money for include cleaning the house (17%), doing their homework and washing the dishes (both 9%), while 43% of kids do not have to do a thing to receive their allowance.
Ms Hassan says children learn a lot about money from their parents and pocket money is an ideal way to teach them the value of money while they’re young.
“Attitudes about spending and savings are developed early on.
“With new payment technologies, kids often can’t physically see the exchange of money, so take time to explain to your kids how it works.
For instance, you may want to help your child understand the value of different items – that an ice-cream may cost $3 – $5, whereas a book may cost $20 – $25.
“Pocket money is a terrific way to teach kids basic money management skills such as budgeting and saving, but it’s important to introduce conditions for receiving the allowance, such as household chores so they don’t take it for granted.
Teaching kids basic money management skills can aid their personal development and it can help them make better financial decisions when they enter adulthood.”
Average pocket money by age group
- Pocket money was found to be highest in Victoria, with children being given an average of $9.67 followed by NSW ($9.07), WA ($8.55) and Queensland ($8.34).
In contrast, kids in Tasmania were only handed $5.71 per week
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
NEED HELP LISTENING TO MICHAEL YARDNEY'S PODCAST FROM YOUR PHONE OR TABLET?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.