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The research – commissioned by financial education app Spriggy, a financial education app – shows that more than a third of those surveyed are ‘worried’ about their children’s understanding of digital money.
Of all the states, Queensland parents the most concerned. However, three quarters of Australian parents continue to provide pocket money using physical cash.
Below are some of the key findings from the research:
- More than 40% of Aussie parents believe children don’t learn enough about money at school
- More than a third admit to being worried about their children’s understanding of digital money, yet nearly 80% of parents continue to provide pocket money with physical cash
- Almost a third of mums and dads admit to experiencing financial debt, and wanting their children to learn from their mistakes
- More than half of Australian parents use pocket money primarily as an education tool
Aussie parents are big believers in pocket money
According to the study’s findings, Australians are still firm believers in pocket money in its traditional form, with two thirds of parents believing it should be earned, using cash as a reward for completing chores around the home.
Nearly half say that pocket money is a ‘given’, and they provide an allowance for their kids to spend ‘how they like’.
Over half of mums and dads are providing their children with pocket money on a weekly basis, with 42% handing out $5-$10 per week, equating to up to $520 a year per child, and one-in-five dishing out up to $1,040 per year, with weekly instalments of $11-20.
Despite the fact we are moving towards an increasingly cashless economy, the majority of parents (78%) continue to provide pocket money in cash form, with many viewing it as an inconvenience.
In fact, 20% of parents say they rarely withdraw cash for themselves, predominantly using the ATM for pocket money purposes, with 11% admitting that they have been unable to give their children money before, simply because they didn’t have any cash on them.
More than half of parents surveyed use pocket money primarily as an education tool, with 46% believing their child still has a lot to learn about the concept of money.
Mario Hasanakos, Spriggy’s Co-founder said that when it comes to learning about money, real world practice is critical.
“In today’s increasingly cashless world there is a disconnect in the way we are handling money as adults and the way we teach our children about spending and saving,” Hasanakos said.
“To get our kids ready for the future, we must teach pocket money lessons in a relevant way.”
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