Pocket money is evolving for the next generation of entrepreneurial kids and their parents, according to the latest NatWest Rooster Money ‘Pocket Money Index’.
In its 2025 Pocket Money Index, NatWest reveals that, throughout the last year, kids in the UK received on average an annual income of £474.76 (equivalent to £9.13 per week) from a combination of regular pocket money, chores, boosts, and rewards, down one per cent from last year.
A more flexible, ad hoc approach to pocket money also appears to have grown in popularity, despite the traditional weekly allowance approach offering a ‘set and forget’ opportunity for parents.
In fact, since 2023, the percentage of parents giving regular pocket money has fallen to 27.40 per cent, a 1.8 per cent decrease, as parents demonstrate a continued shift in how pocket money is issued, favouring ad hoc rewards for things like chores and boosts around special events like birthdays.
Kids who receive income from regular pocket money as part of a routine have seen an increase of 1.85 per cent since 2023, with kids being paid an average of £3.85 per week.
Will Carmichael, founder and CEO of NatWest Rooster Money, says: “Rooster Card kids are demonstrating great day-to-day money management and positive behaviours across earning, saving and spending.
“Whilst spending has increased slightly, reducing what is left over at the end of the year, we see kids continuing to be conscientious in taking on chores to top up their pocket money, in aid of securing the things they want – like a new game – or need, like sports gear. This is brilliant, early, hands-on practice that’ll start to build their money confidence.”
Pocket money trends
By analysing data from over 350,000 Rooster Card users, NatWest also found that age remains a clear factor in how much regular pocket money kids are given. Seventeen-year-olds enjoy the highest weekly pay cheque at an average £8.31 a week, though this has decreased slightly, at 11p less than last year. Meanwhile, six-year-olds’ average pocket money comes in at £2.81 a week, representing a 6p improvement on last year.
As inflation continues to boost prices in the UK, it appears that kids are spending more and saving less. Overall, kids managed to set aside £30.38 of their annual income on average over the year, which shows savings as a percentage of annual income have fallen by 33 per cent since last year and 48 per cent since 2022.
Despite facing a tricky economy, kids continue to demonstrate budgeting skills, making sure to put their money aside for the things they really want. Fifty-four per cent of savings through the year were put into pots for specific goals, such as saving up to buy a computer game or for an upcoming holiday.
In fact, gaming continues to dominate kids’ wishlists as the number one category kids are saving for. Meanwhile, savings for holidays and travel have increased by 6.8 per cent and sports have increased by 1.8 per cent, suggesting kids are spending more time and money on physical activities and having fun outside.
In terms of where kids spent the most money overall, Amazon, which held the top spot last year, is now placed seventh in the rankings. Meanwhile, Tesco moved up the rankings and replaced Amazon as the brand with both the highest number of transactions and the most money spent overall.
