Pocket money on the rise

Herald pic

SYDNEY - There's at least one sector of the Australian economy thriving in the resources downturn and the dip in consumer confidence: pocket money.

A survey released on Monday suggests the amount of cash being handed over by parents to their kids as pocket money has increased by almost 50 per cent since 2013 to a nationwide average of $11.30 per week.

The Heritage Bank survey said savings had overtaken toys and lollies as the number one use for the cash, but chief executive John Minz said he is concerned by a four per cent drop in the number of kids having their own savings account.

"Giving children their own savings account is an important part of building financial confidence and helps them understand how saving money works," Mr Minz said.

"Almost half of parents surveyed believe the way their children receive and use pocket money has a direct impact on their relationship with money."

It appears the gender pay gap, which the Bureau of Statistics this year said has hit a record high of 18.8 per cent, exists even when it comes to pocket money.

The Toowoomba-based mutual's survey of 500 parents found girls receive about 10 per cent less than boys, who get $11.80 per week to girls' $10.60.

The bank said kids in regional areas earn an average of $4 less per week than their city cousins.

Making the bed, indoor cleaning such as washing dishes, and looking after pets were the chores most commonly demanded by parents in exchange for the cash.

-AAP