Parents giving more pocket money than they can afford

THINGS have changed since today’s parents were kids. And modern mums and dads are making a big mistake that’s costing them a packet.

MANY Queensland parents are handing out more pocket money to their kids than they can afford, with some payouts rising more than twice as fast as wages.

Australian research shows that each child receives up to $14 pocket money on average per week – more than is spent on the child’s health, clothing and savings.

LESSON: Pocket money averts problems later in life

“Suncorp Bank’s Cost of Kids report shows that families with three children spend almost $2200 a year on pocket money,” the bank’s regional manager Damian Hearne said.

“For many, they will have failed to factor that into their family budgets. After all, that is the equivalent of a return flight to London, which people would almost certainly plan for.”

AMP Brisbane financial planner Tony Rigby sees parents give random money to kids for tuckshop or extra treats without thinking.

“My rule of thumb is to give kids one dollar for each year of their age,” he said.

According to the Halifax banking group, which has studied pocket-money trends for decades, handouts have risen by 462 per cent since 1987, while wages have increased by 188 per cent.

Gold Coast mother-of-three Amanda Bude keeps her family’s pocket-money spending under tight control and gives her three children $2 a week if they complete their chores.

“The kids know what they have to do and they do it without complaint. Things like making their beds and packing and unpacking their backpacks have become part of their routine,” she said.