33% of eight to 15 year olds now saying that they worry about money, according to the latest research from the annual Halifax pocket money survey.
Despite boys receiving 12% more pocket money than girls (£6.93 vs £6.16), they are now much more likely to worry about money too (37% vs 30%). 12 months ago, there was no such gender divide, with just 1% difference in the amount of boys and girls who worry about money and boys receiving just 2% more pocket money than girls (£6.25 vs £6.14).
Where children live influences how much they worry about money. Those in Greater London have finances on their minds the most, with 54% worrying about money, compared to 27% in Wales and the West of England, where children worry the least.
Parents are clearly aware of their children’s money worries, with the same number (33%) admitting that they think their children worry about money as actually do. Regional variances again show significant differences. 52% of those parents living in Greater London think their children worry about money, compared to just 22% in Wales and West. This also matches where children are most and least worried about money, reinforcing that parents are picking up on their kids’ feelings. However, parents are now feeling more confident in teaching their children about finance. 83% say they feel comfortable talking about money with their children, up from three quarters (76%) in 2015.
Giles Martin, head of Halifax Savings, said: “It is concerning that one in three children worry about money. This is likely to be a reflection of young people picking up on their parents’ financial anxieties and shows how money issues continue to affect many families. Boys seem more switched on to these concerns, as despite receiving significantly more pocket money than girls, they are now more likely to worry.
“It is encouraging however, that parents are now more comfortable talking to their children about money. With nearly two thirds of children keen to understand more about banking, it is clear these conversations are appreciated.”
Borrowing money starts at an early age. 19% of children say they borrow money, with more boys (21%) admitting to this than girls (18%). Children in Greater London (30%) are reported to be borrowing money the most, compared to their counterparts in Scotland (14%) who borrow the least. Older children are more likely to borrow money; 24% of 15 year-olds doing so compared to 16% of eight year-olds.
Children are also willing to lend money to others. 29% of children said they lend money to other people. Almost a third of boys (32%) lend money to others, compared to 26% of girls. Older children seem more likely to be generous with their money with two in five (40%) 15 year-olds offering to lend money, in comparison to 17% of nine year-olds.
When it comes to improving their knowledge of banking, 63% of children want to learn about bank accounts and 26% want to increase their knowledge of credit cards. This rings particularly true for children based in London, where 39% want to know more about credit cards. This compares to just 19% in the North East, Yorkshire and Humber.
88% of parents say that they worry about money themselves. The gender balance changes from childhood to adulthood, with female parents (91%) worrying significantly more about money than male parents (84%). Parents in the North West (95%) worry about finances the most, compared to parents in the South East and East (84%) and London (88%) who worry the least.
