New research has revealed that more than a quarter of children under 12 have no experience with money.
According to statistics from the Financial Services Compensation Scheme, one in four parents of children under 12 years old do not give their children pocket money or financial rewards for carrying out household chores.
In the South East, less than half of the parents surveyed give their children pocket money and if they do, they are reluctant to give their children full freedom to choose what they spend their money on.
It was found that the parents that do allow their children a small amount of pocket money are taking more control over how it’s spent, rather than letting them choose what to purchase. This is to avoid irresponsible purchasing, such as buying sweets and chocolate and encouraging them to buy something more substantial.
The survey suggested that without having financial experience and the freedom to choose how their money is spent, children are vulnerable to being careless with money at a later age, as well as impacting their ability to budget.