Glasgow top Hotspot For Pocket Money

Online, May 27, 2010 (Newswire.com) - Unlike much of the world's financial systems, children's pocket money seems to have remained relatively untouched through the credit crunch. The best place in the UK, it seems, is Glasgow.

There's no doubt that many families have been facing significant economic pressures, but a new study has revealed British parents are still doling out regular pocket money. At the top of the list were children in Glasgow who receive an average of £4.87 per week or £253.24 annually. Considering children in the UK start receiving pocket money as early as the age of four, this equates to £3,545.36 by the time they reach the age of 18.

Southampton children fell on the other end of the spectrum. They received £2.69 each week for pocket money, for an annual total of £139.88. They start receiving this money from the average age of four, so they receive approximately £1,958.32 by the age of 18, which is a total of £1,587 less than the children in Glasgow.

Engage Mutual conducted a survey on the topic which included 3,000 parents from across the UK and revealed that 68 percent of them give their children pocket money. Of them, only seven percent said they are giving their children less money this year than previous years because of the persistent credit crunch.

Across the UK, parents give their children an average of £4.08 each week.

Newcastle children were the second luckiest group of children in the UK. They receive a weekly sum of £4.67, or £242.84 annually.

Cardiff parents were the third most generous. Their children receive an average of £4.65 weekly, or £241.80 each year.

In all, 67 percent of children have to work and do chores for their weekly money including vacuuming, dusting, cleaning their rooms, and making their bed.

Interestingly, 65 percent save at least a portion of their pocket money.

"Parents have an important role in the attitudes their children develop toward managing money and saving for the future, whether it's small but consistent addition to piggy banks or to their child trust fund. Pocket money gives children an important start when learning life skills such as budgeting and the concept of being rewarded for a job well done," said Karl Elliott of Engage Mutual.

The survey found Portsmouth, Coventry and Birmingham children all receive over £4.00 per week, but not all children receive this kind of money every week.

Children in Swansea receive £3.04 per week while York children get just three pence more.

"Pocket money is both a reward and encouragement for children to behave well. This means parents also withhold this weekly cash when their children's behaviour falls short. Parents also say they watch what their children spend money on and 74 percent of parents have also started a childrens savings account for each child," continued Elliott.

A few parents, just seven percent, are giving less pocket money out each week. Some of the reasons for this include difficult financial times, increasing mortgage payments, or just a desire to be more cautious with their finances.

KIDS GET THE MOST POCKET MONEY IN:

AVERAGE PER WEEK (£) AVERAGE PER YEAR (£)

1. Glasgow 4.87 253.24
2. Newcastle 4.67 242.84
3. Cardiff 4.65 241.80
4. Portsmouth 4.42 229.84
5. Coventry 4.41 229.32
6. Birmingham 4.38 227.76
7. Leeds 4.30 223.60
8. Aberdeen 4.25 221.00
9. Chelmsford 4.16 216.32
10. Wolverhampton 4.13 214.76

KIDS GET THE LEAST POCKET MONEY IN:

AVERAGE PER WEEK (£) AVERAGE PER YEAR (£)

1. Southampton 2.69 139.88
2. Swansea 3.04 158.08
3. York 3.07 159.64
4. Norwich 3.16 164.32
5. Oxford 3.24 168.48
6. Brighton 3.25 169.00
7. Bristol 3.29 171.08
8. Plymouth 3.32 172.64
9. Worcester 3.38 175.76
10. Cambridge 3.48 180.96

1 Survey conducted for Engage Mutual by OnePoll in March 2010 with 3,000 parents across Great Britain.

For further information please contact:

Kathryn McLaughlin, Engage Mutual Assurance
01423 855245

mobile: 07794 283788
[email protected]

NOTES TO EDITORS

Engage Mutual Assurance is a trading name of Homeowners Friendly Society Ltd (HFSL), Registered and incorporated under the Friendly Societies Act 1992, Registered number 964F and its wholly-owned subsidiaries, Engage Mutual Funds Limited (eMFL) and Engage Mutual Insurance Ltd (eMIL). Both HFSL and eMFL are authorised and regulated by the Financial Services Authority (FSA). HFSL's Register number is 110072, eMFL's Register number is 181487. eMIL is authorised to conduct general insurance business by the Financial Services Commission Gibraltar and is regulated by the Financial Services Authority for the conduct of UK business. eMIL's FSA Register No is 485680. You can check this on the FSA's Register by visiting the FSA website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234.
Engage Mutual is one of the larger UK mutuals providing simple, value for money savings, protection and investment products. It currently helps over 438,000 customers of all ages to protect, preserve or enhance their welfare, with some of the most straightforward products on the market. Engage Mutual prides itself on being a family-oriented, modern mutual, providing products that help enable households of all kinds to plan their finances to help meet their future needs. More information on Engage Mutual is available at www.engagemutual.com
Engage Mutual supports mutuality, friendly societies and the regional financial services industry through links with the Association of Financial Mutuals, Mutuo and Leeds Financial Services Initiative.
Engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with organisations including Yorkshire Building Society.
Engage Mutual has been the title sponsor of the Rugby Super League since 2005 and has extended its agreement to 2011.
Engage Mutual announced its entry into the health cash plan market in July 2008 following an agreement of partnership with Wakefield & District Hospital's Contributory Scheme (WDHCS). Further to this, 30,000 health cash plan customers transferred from Premier Health Benefits (part of WDHCS) to Engage Mutual Insurance Ltd.

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