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Australian children are 21 per cent more likely to have to work to receive pocket money than past generations – busting the myth that Gen Z have it easy, finds Teachers Mutual Bank.
The findings are part of Teachers Mutual Bank’s ‘50 Years of Pocket Money’ report^ which surveyed more than 1,300 Australian adults on their pocket money views and experiences. According to the report, 81 per cent of Australians believe children today should do chores to receive pocket money and 85 per cent believe that parents should have some influence on what children do with their pocket money.
“Despite some beliefs to the contrary, Australian children are not simply being handed money. Our report has shown that Australians are committed to educating children about financial literacy, and the value of being rewarded for hard work, through the provision of pocket money,” says Steve James, Chief Executive Officer, Teachers Mutual Bank.
“It is refreshing to hear that parents are setting expectations to ensure their children develop good financial habits,” says Mr James.
The top pocket money chores for children in 2016 include tidying their bedroom (85 per cent), setting the dinner table and/or cleaning up (77 per cent), taking out the rubbish (67 per cent), looking after pets (66 per cent) and cleaning the house (50 per cent).
Pocket money has been a consistent part of growing up for Aussie children with almost 70 per cent of adults having received pocket money as a child. Today, an overwhelming 87 per cent of Australians think children should be paid an allowance.
The ‘50 Years of Pocket Money’ report celebrates Teachers Mutual Bank’s 50-year anniversary, and reveals how much pocket money kids receive, how it is managed, the conditions for earning it and how it has transformed in line with our twenty-first century lifestyles. Key insights from the report show:
While parents agree that chores and good behaviour are the keys to a healthy piggy bank, the way pocket money should be paid to children is a point of contention among Australian adults,” says Mr James.
Over half (56 per cent) of Australians who received pocket money as a child remember their parents giving them guidance on what they did with their pocket money. In 2016, almost nine in ten Australians think parents should have some influence over pocket money spending and saving.
Despite our increasingly cashless society, where pocket money is concerned, cash is still king. However, it appears this may be changing. Almost a quarter (23 per cent) of Australians say allowance should be paid into a bank account either for kids to use ‘tap and go’ card features to spend, or to save their money for the future.
To meet the growing need for a cashless pocket money option for families, Teachers Mutual Bank is piloting a program called Spriggy, a dedicated mobile app that comes with a reloadable Parent Wallet and prepaid Visa card for children. Using the app, parents can load money into the Parent Wallet from a nominated bank account, and then easily allocate pocket money to the child’s prepaid Visa card.
“The prepaid card can be used to spend online or in-store, wherever Visa is accepted, and parents can monitor their kids’ spending in the app. We believe that Spriggy provides a great resource and we wanted to test it to see if it meets our members’ needs,”, said Steve James.
Teachers Mutual Bank also offers banking solutions for children through their Tiny Monsters Bank which helps provide a basic understanding about money and finances to children aged under 12 (with Teen Banking the corresponding solution for over-13s). It’s filled with activities that stimulate, educate, motivate and engage children while they learn about money and is matched with Mighty Saver – a high interest savings account for under-18 year olds that rewards savings.
“A lot has changed since Teachers Mutual Bank was established in 1966, but pocket money has remained a central rite of passage for many Australian children. By sharing our research on 50 Years of Pocket Money, we hope to spark conversations about financial literacy across Australia and encourage awareness of how learning about money can benefit children,” concludes Mr James.
Visit the Teachers Mutual Bank website, Facebook and Instagram pages.
50 years of pocket money fast facts
Teachers Mutual Bank have been helping members make the most of their money since 1966. With over 186,000 members and more than $5.8 billion in assets Teachers Mutual Bank is dedicated to providing financial products and services for teachers, their families and employees in the education sector.
Teachers Mutual Bank exists for the mutual benefit of their members, which means everything they do is to ensure their members have a brighter future.
For further information, the full report, infographic, pocket money tips and hints, pocket money case studies or to schedule an interview with Steve James please contact:
Katie Eastment/ Victoria O’Neill
IMPACT Communications Australia
Ph: (02) 9519 5411
Mob: 0435 918 466 (Katie)
^Conducted via Pureprofile (July-August 2016), n=1,364