- Piggy banks are filling up as kids save an average of £150 in the past year
- Keen to keep their cash safe, one in 10 children use a secret hiding place
- Starling Bank today launches new app access for children to make money simple
Clothes shops, games and toy stores and ice cream vans are set to reap the benefits this summer, as kids savings reach £200 million.1
Nearly half (48%) of 6-16 year olds have been unable to spend their pocket money, tooth fairy payments and earnings on the things they want in the past year, shoring up healthy reserves according to Starling Bank.
Shopping hit list
Children in this age group now have an average of £150 saved and are ready to spend in the coming months. The top five planned purchases will be new clothes (30%), sweets and ice cream (26%), toys and games (26%), computer games (20%) and make-up (14%).
Kids have been stashing their cash in piggy banks (37%) and bank accounts (37%), while some have come up with more inventive ways to store it. One in 10 (10%) 6-16 year olds say they keep their money in a secret hiding place, squirrelling it away at the back of wardrobes, between the pages of books, and even in cuddly toys.
The Piggy Bank of England hasn’t just been funded by mum and dad or monetary gifts. One in eight (12%) kids aged 6-16 bolstered their savings by setting up side hustles, selling unwanted toys, games and clothes, or making things to sell online, at village fetes, or stalls outside their homes (5%).
The price isn’t right
Some children are still stumped when it comes to understanding how much their money can buy them. One in five (20%) under 10s think a holiday costs more than the family house or car, whilst one in seven (14%) believe the same to be true of a games console. One in 20 (5%) under 10s think a Netflix subscription and a pet (5%) is more expensive than their house.
To help children keep track of their money, from today Starling is giving Kite debit card users aged 6-16 access to its banking app. Linked to an adult’s account, children can check their balance, see transactions and receive real-time spending notifications on their phone or tablet.
Rachel Kerrone, Head of Brand at Starling Bank commented: “Our research shows 22% of children would now prefer to receive money in their bank account and nearly 38% say they’re spending more of their money online than they did before the pandemic.
“We’ve developed our new children’s app space to help families give their kids independence with their money, and a better understanding of digital banking and how to budget.”
Tim Jay, Professor of Psychology of Education at Loughborough University commented: “Children can learn a lot from managing their own money. We know that receiving an allowance, spending and saving, and having conversations with their family about money, can benefit development and learning.
“But as digital and online spending become more commonplace than using coins and notes, it’s important that children have the support to manage their money confidently in a digital world.”