One in three children worry about money

The survey was conducted among 1200 children aged 8-15 and 557 adults between May 1 and May 15 2015.

Money worries persist for 89 per cent of parents and filter down to children

One in three children worry about money

One in three children worry about money

Despite an apparent improvement in the economic situation of the country over the past couple of years, the previous recession appears to have left a lasting legacy on the nation’s children.

A third of children (31%) have admitted they have worried about money, whilst a large number of children are aware of money worries in the household, according to the annual Halifax pocket money survey.

The survey was conducted among 1200 children aged 8-15 and 557 adults between May 1 and May 15 2015. It also found that nine out of 10 parents (89%) surveyed admitted to worrying about money, with most failing to hide this from their children: almost three quarters of children (73%), say that they are aware of their parents’ concerns.

However, it is not only feelings about money that children are picking up on; behaviour is also filtering down to offspring. Almost one third (29%) of parents admit to borrowing money from someone they know at some point, whilst more surprisingly one in six (16%) children claims that they have had to do the same. Worryingly, one in 10 (11%) eight to 11 year olds say they have borrowed money.

In a similar vein, a quarter of children (25%) have also lent money out, with around a third (30%) of these saying the money was lent to their own parents, a slight (2%) increase from the previous year.

Financial education

Now that financial education is being taught in schools it is hoped that in the future children will be better able to manage their money. However, a year into the new curriculum the survey suggests that it has yet to drive a notable change in young people’s understanding of financial matters, with the data remaining almost unchanged or, in some cases, deteriorating slightly since children were last asked if they knew what certain financial terms meant (table 1).

Asked if they felt able to explain what the following terms, the percentage of children that felt able to do so was as follows:

Bank account58%56%-2%
Credit card37%36%-1%
Debit card33%36%3%
Current account23%22%-1%
Interest rates17%18%1%
None of the above15%17%2%

Pleasingly, for parents, the research confirmed that children felt the school-based delivery might not be the full solution, with three in five children (60%) saying that they would prefer to learn about money from their parents, whilst one in five (20%) thought school was the best place for this.

Giles Martin, Head of Halifax Savings, said: “Parents need to be very aware just how much of an impact their own feelings about money can have on their children’s views and habits. Whilst finance is now being taught in schools, children don’t want their mum and dad to take a back seat.

“Talking about money at home can be a great way for children to start building an understanding of the importance of good money management. Pocket money can be a great tool for parents to teach their children the basic life skills of earning, and saving money.”

Additional findings

Additional findings included:

  • 61% of children understand that money comes from work, with a further nine out of 10 children understanding that their parents earn their money through work.
  • Around two thirds of children would like to learn more about current accounts (61%) and savings (60%)
  • 45% of children keep their money in a money box, compared to 42% who use a bank account.
  • Over two thirds (70%) of children save a proportion of their pocket money, but only one in 10 save all of it (10%).

Learn more

Despite much media hype about the economic ‘recovery’, its benefits have yet to filter down to the majority of the British population, saddled as they are with debt. Worse still, the prospects for a strong economic recovery following the government’s current economic policy, are negligible. Indeed, this may be as good as it gets before the next recession.

Watch this interview with Professor Steve Keen from Kingston University to find out why. In it he explains why a complete change of economic approach is needed if we are to put the British economy onto the path of sustainable growth, which benefits all its citizens not just a minority at the top of the food chain.

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
Taylor Holt - 300x300

Written by
Taylor Holt
Estate Planning Expert

Taylor Is Our Resident Estate Planning Expert. He Knows That Everything Revolving Around Wills or Funeral Planning Can Be a Sensitive Subject That People Don’t Like to Discuss. But He Also Knows How Important It Is to Know All There Is to Know About It. Taylor Makes It His Mission to Spread Awareness About Estate Planning, and We Believe Everyinvestor Is the Best Platform to Do That.

Monique - 300x300

Written by
Monique Pittman
Pensions Expert

Monique Is Our Resident Pensions Expert. Many People Postpone Planning Out Their Pension, Thinking That Is Something They’ll Have to Worry Much Later in Life. Monique Knows How Important It Is to Start Planning Your Pension Early, and She Wants You to Know It Too!

Written by
Lisa Schilling
Insurance Expert

Lisa Is Our Resident Insurance Expert. She Knows How Important It Is to Be Ready for Any Scenario, Especially When a Family Member Is Involved. Nobody Likes Being Found Unprepared in a Tough Situation! Lisa Can Find the Best Insurance to Cover Your Every Need, Present and Future.

Doyle Edwards - 300x300

Written by
Doyle Edwards
Mortgages Expert

Doyle Is Our Resident Mortgages Expert. He Comes From a Long Line of Financial Gurus, and It Truly Shows. Despite His Young Age, There Is No Question He Cannot Answer When It Comes to Mortgages, and His Ability to See Outside of the Box to Find the Best Mortgage Deals Is Truly Impressive.

jason stubbs 300x300 1.jpg

Written by
Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

rachel w.jpg

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
Mark Patterson

Written by
Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
kath icon.png

Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.