Whether it’s used for sweets, toys, or saving towards something bigger, pocket money is often a child’s first experience of managing money. It helps them understand the value of saving, making spending choices, and learn how money can grow over time.
However, our new research using third-party data[1] shows that children today may have far less financial independence than previous generations.
Allowances peaked nearly 20 years ago and have been in long-term decline ever since, leaving today’s children with less in both cash and real terms. The gap has widened since the pandemic, with pocket money falling behind inflation every year since 2021.
This means not only that children’s pocket money doesn’t stretch as far as it used to, but also that saving for bigger goals has become much harder. Where once a new console could be bought with months of saving, it now takes well over a year. Even everyday treats like sweets and chocolate now take up a larger share of weekly allowance than they did in the past.
Take a look at the full findings from our research below, covering how much pocket money children get today, how it compares with inflation, what it really buys, and the importance of pocket money in teaching children valuable lessons about saving — with long-term options like Junior ISAs (JISAs) showing how even small amounts have the potential to grow into something bigger over time.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Jump to:
- How much pocket money do children get today?
- Has pocket money kept up with inflation?
- What can children buy with pocket money?
- Can chores make up the difference?
- How to teach children about money with pocket money
- Methodology
How much pocket money do children get today?
Looking back across the past two decades, we found that pocket money reached its highest point in 2005, when children were given an average of £8.37 a week, or £435.24 across the year.
By 2010, the average had already dropped by more than 30% to £5.89 a week (£306.28 a year). This marks the start of a long-term decline, as although allowances rose and fell slightly throughout the following decade, they never returned to the levels seen in the mid-2000s. For example, children received £5.98 in 2012, £6.50 in 2013, and £7.71 in 2019 (totalling £400.92 a year), showing a gradual increase, and although the 2019 figure was the highest of the decade, it was also 66p less than 2005 (£34.32 a year), which is nearly 8% less in pocket money.
The biggest changes have occurred more recently. In 2020, pocket money decreased again, with children receiving an average of £7.55 a week (£392.60 a year), and just two years later, in 2022, the average had dropped to £4.99 a week (£259.48 a year) — the lowest amount recorded since 2001, and a fall of 34% in only two years.
Today, children receive an average of £4.06 a week (£211.12 a year). This is the lowest it has been since 2001, leaving children with £223.99 a year less than their peers in 2005, and 46.2% below what they received as recently as 2020. These figures show that the pandemic and cost of living crisis have likely impacted children’s pocket money. While household costs have risen year after year, thus making it more expensive for them to buy things with their pocket money, children’s allowances have not kept pace.
Compared to their peers 15-20 years ago, today’s children have less financial independence and fewer opportunities to learn how to manage pocket money. For parents, this may raise important questions, such as “how much pocket money should I give?” Should it be adjusted in line with rising prices? And what can pocket money realistically cover for children today?
Has pocket money kept up with inflation?
Looking at allowances in cash terms shows that children are receiving less than they did in the mid-2000s. But when we compare pocket money against inflation over the past 15 years, this becomes even clearer:
From 2010 through to 2020, pocket money broadly kept pace with rising prices. In fact, in some years, children were even slightly ahead. For example, in 2019, the average weekly allowance was £7.71, compared to an inflation-adjusted figure of £6.68. This meant children were just over £1 a week, or £53.56 a year, better off in real terms. The same was true in 2020, when children received £7.55 a week, while inflation suggested it should have been £6.75, leaving them 80p more each week, or £41.60 a year.
Since 2021, however, allowances have consistently fallen behind inflation. In that year, the average pocket money was £6.48, compared to an inflation-adjusted figure of £6.92, leaving children 44p worse off each week, or £22.88 a year. By 2022, that gap had widened further, with children receiving just £4.99 a week, while inflation suggested the figure should have been £7.47. This is a difference of £2.48 a week, or £128.96 across the year.
The shortfall grew again in 2023, with children receiving £5.00 a week, whilst the inflation-adjusted amount should’ve been £7.97. That left children nearly £3 (£2.97) worse off each week, equal to £154.44 across the year.
Today, the gap has widened further. Children now receive an average of £4.06 a week (£211.12 a year), while the inflation-adjusted figure should be £8.24. This is a gap of £4.18 each week, or £217.36 over the course of a year — the largest shortfall recorded in our research. When we add these differences together, the cumulative shortfall since 2021 amounts to £523.64. But this isn't solely due to rising prices; parents have actively reduced pocket money amounts in some years, likely influenced by factors like the cost-of-living crisis. Combined with inflation, this represents a significant loss in spending power for children.
Pocket money is often a child’s first opportunity to manage money independently, which means that if allowances are falling in real terms, it can make it harder for children to practise saving towards goals or to understand the value of money in day-to-day life. For parents, this creates an opportunity to talk to children about inflation — why money doesn’t go as far as it used to, and how putting their pocket money into an account that earns interest can help it grow over time through compounding — something that won't happen if it just sits in a piggy bank.
What can children buy with pocket money?
While the weekly amount of pocket money is important, what really matters to children is what that money can buy. To find out, we looked at the cost of popular toys and treats from 2010 compared to the price of their equivalent today to show just how much less affordable many of these items have become.
Big purchases take longer to save for
In 2010, the newly released Nintendo DSi was the console of choice for many children, costing £129.99 to buy. At the time, this was around 42% of a child’s annual pocket money, meaning it would have taken just over five months, or around 22 weeks, to save for.
Today, the equivalent is the newly released Nintendo Switch 2, which costs £395.99.
With average annual pocket money now at £211.12, the console accounts for 187% of a year’s allowance, meaning a child would need to save for 97 weeks — more than four times as long as in 2010.
The same pattern is clear across other consoles.
A PlayStation 3 in 2010 cost £249.99, or 82% of a child’s annual pocket money at the time, and could be saved for in 42 weeks. The PlayStation 5 now costs £479.99, which is 227% of today’s annual allowance, requiring 118 weeks of saving, which is more than two years.
An Xbox 360 cost £149.99 in 2010, or 49% of yearly pocket money, taking 25 weeks to save for. Its modern counterpart, the Xbox Series S, costs £299.99, equal to 142% of today’s allowance, and would take 74 weeks to afford.
Other mid-range items have also become harder to save for. A BMX bike in 2010 cost £89.99, or 29% of annual pocket money, and could be bought after saving for 15 weeks. Today, the same style of bike costs £160, or 76% of annual allowance, requiring 39 weeks of saving.
A gaming chair has risen from £44.99 in 2010 to £65.00 today, increasing the saving time from 8 to 16 weeks. Even a basic push scooter has more than doubled in affordability terms, going from 3 weeks of saving in 2010 to 10 weeks today.
Video games highlight the same thing. In 2010, FIFA 11 cost £38.99, taking a child around 7 weeks to save for. Today’s FIFA costs £62.99, meaning a child would need to save for 16 weeks at current allowance levels.
Everyday toys remain relatively affordable
Generally, smaller toys have stayed consistent in affordability. Board games such as Monopoly and Scrabble accounted for around 5% of annual pocket money in 2010, requiring 3 weeks of saving, and today they cost 10% of annual allowance, adding just two more weeks of saving. Barbie dolls have also remained rather steady at 6% of annual allowance in 2010 and 9% in 2025, with children needing to save for one more week than in 2010 (4 weeks).
Interestingly, in some cases, toys have even become slightly cheaper to buy. A half-size classical guitar in 2010 cost £69.99 (23% of annual pocket money), taking 12 weeks to save. Today, the same purchase costs £60.00 (28% of annual pocket money), requiring 15 weeks to save. Although the number of weeks to save has increased because of lower pocket money, the cash cost itself as actually lower than it was in 2010.
Treats and sweets now take a bigger share
It isn’t just bigger purchases that have seen savings times increase, as treats and sweets also eat into a much larger share of weekly pocket money than they once did.
A bag of Maltesers, for example, made up around 8% of a child’s weekly allowance in 2010. Today, at £1.05, the same bag accounts for 26% of what children receive each week, which is more than a quarter of their weekly pocket money. The well-loved 99 Flake ice cream has seen similar increases, costing 99p in 2010 (17% of a weekly allowance) and now £1.50 (37%), which is over a third of a week’s of a week’s pocket money.
Even the smallest of treats has seen sharp rises in cost. Freddos have tripled in price from 10p to 35p, going from costing 2% to 9% of weekly pocket money[3]. Chocolate bars like Mars and Snickers, which once cost around 25p each (4% of a weekly allowance), now cost around £1.05, or 26% of a weekly allowance [3]. Similarly, a bar of Dairy Milk has increased from 45p to 95p, rising from costing 8% to 23% of pocket money. Even Fruit Salad chews, once just 1p each, now cost 6p, meaning they have moved from negligible to 1% of a child’s weekly allowance.
Where children once could buy several small treats with their weekly pocket money and still have money left to save, they now find that just a few snacks can use up most of their allowance. Alongside the rising cost of bigger purchases, this shows that pocket money no longer stretches as far as it once did, whether children are saving for the long term or spending on small, everyday treats.
Can chores make up the difference?
For many families, pocket money isn’t just handed out as a set weekly allowance — it can also be earned by helping with jobs around the house. While the amounts children earn are usually small, they can add up over time. More importantly, they provide a valuable way to show that money is earned through effort, and that saving requires patience and consistency.
Take mowing the lawn as an example. Children are typically paid £3.68 an hour for this job. It’s not something they’ll be doing every week, as lawns only need regular cutting for around half the year, but if a child mowed the lawn once a week across the spring and summer (around 20 weeks), they could earn £73.60 for their efforts.
Washing the car is another common task, paying an average of £3.33 an hour. If this were done once a month, a child could add £39.96 a year to their pocket money, or £79.92 if it were done fortnightly. Combined with mowing, that’s already well over £100 extra income in a year.
Some chores are more realistic as weekly tasks. Vacuuming, dusting, or cleaning the bathroom could earn between £1.03 and £1.11 an hour on average. Where families have the budget to pay for chores, a child who took responsibility for one of these jobs every week could potentially make an additional £53.56 to £57.72 a year. Add in another small weekly job, and that rises to more than £100.
Other tasks, like dog walking, are also popular ways for children to earn extra pocket money. The average pocket money rate is £1.04 an hour, but this doesn’t mean a child would be out walking for a full paid hour every day. More realistically, that might be an hour spread across the week — for example, 10 to 15 minutes each day, totalling around £54.08 a year. It’s not a huge sum, but it can go towards small treats or contribute to bigger savings goals.
Individually, these payments might feel modest. But when families are able to provide an annual allowance of £289.12, these earnings can give children a noticeable boost. A child who takes on one regular household chore alongside a few occasional jobs could realistically earn an extra £150 to £200 across the year. That’s enough to buy a mid-range item like a scooter (£40.00) or bike (£160.00), or to help save towards a bigger goal.
This is where the real value of chores lies. They may not close the gap created by falling allowances or inflation, but they give children an important first taste of earning money through their own effort.
Where possible, parents can build on this by encouraging children to use their earnings in a balanced way — perhaps setting aside half for saving towards a bigger item, while spending the rest on smaller treats. This helps children learn the basics of budgeting, goal setting, and patience, which are lessons that last far longer than the money itself.
Of course, not every family has the budget to pay children for household tasks, and in many homes, children contribute because it's simply part of family life. The real value isn't necessarily in the payment itself, but in helping children understand the connection between effort and reward, and learning to manage whatever money they do have access to.
How to teach children about money with pocket money
Pocket money today may not stretch as far as it once did, but it still plays an important role. Even a small weekly amount gives children the chance to make decisions about spending and saving, and with the right guidance, it can be a great way to build financial skills that last into adulthood.
Why the amount matters less than the lesson
Our research shows that the average child now receives £4.06 a week, which is much lower than in the mid-2000s and below what they would need to keep up with inflation.
But what matters more than the amount is how it’s used; whether it’s £2 or £10, one of the main benefits of pocket money is that it gives children the opportunity to learn about budgeting and making financial choices.
By keeping it consistent and encouraging children to think about where their money goes, parents can turn even small sums into a teachable moment.
How to use pocket money to teach about saving
Bigger purchases now take far longer to save for due to lower pocket money and the high price of items. For example, the latest Nintendo console takes 97 weeks of saving today, compared to 22 weeks in 2010, while a PlayStation has almost tripled from 42 to 118 weeks.
For children, these saving times can feel like forever, but they also present an opportunity to learn about setting goals and practising patience.
Parents could help by encouraging children to split their pocket money into different “pots”: one for small weekly treats, one for medium-term savings, and one for bigger goals, like a games console. This helps children practise balancing short-term wants with longer-term plans, just like adults do when managing their own money.
Showing the value of long-term saving with JISAs
Allowances have also fallen behind inflation, but this isn't solely due to rising prices. Parents have actively reduced pocket money amounts in some years, likely influenced by factors like the cost of living crisis. Combined with inflation, this leaves children £523.64 worse off compared to 2021[2]. This makes it harder for children to see their money go as far as it once did, but it also provides an opportunity to talk about long-term saving and explain how both inflation and family budget pressures can affect spending power.
While pocket money helps children understand everyday decisions, a Junior ISA demonstrates how regular saving could build wealth over time. Parents can show their children how small, consistent contributions has the potential to grow into something bigger by the time they turn 18. It’s a practical way to show children the benefits of consistency, patience, and long-term planning.
For more information, read our comprehensive guide to Junior ISAs.
Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future.
With investing, your capital is at risk, so the value of your investments can go down as well as up, which means you could get back less than you initially invested.
Wealthify does not provide advice. If you’re not sure whether investing is right for you, please speak to a financial adviser.
Methodology
- Wealthify analysed average weekly pocket money figures in the UK using data from Statista for the period of 2000 to 2023, and by averaging the weekly pocket money across 8-15 year olds found by Rooster Money for 2024/25. Annual amounts were calculated by multiplying weekly averages by 52 weeks.
- Pocket money was compared against inflation using the UK Consumer Prices Index (CPI), with figures from 2010 to 2024/25 adjusted to show what allowances would have been if they had kept pace with inflation, setting 2015 as the base.
- Costs of toys, games, and sweets were taken from 2010 Argos catalogues and equivalent listings in 2025, as well as consumer articles and listings. Affordability was calculated as a percentage of annual pocket money and as weeks of saving required.
- Argos | Gift guides from 2008-2019
- TRA | Toy Year 2000
- One Pound Sweets | The history of Cadburys Freddo price rise
- Trolly | Mars chocolate bar
- Sainsbury's | Cadburys milk chocolate
- This is Fresh | Cost of retro sweets then vs now
- Candylicious Sweets | Fruit Salad
- Glasgow World | Inflation hits record high from Mars Bars to Freddos
- Chore rates were sourced from Rooster Money’s research on the best-paid chores and compared to professional service rates published by Checkatrade, NimbleFins, HaMuch, and NarpsUK in 2025:
