Almost one in every two parents in Ireland give their children pocket money, with digital wallets like Revolut emerging as the most popular method, followed by the traditional cash or coins.
On average, parents say they started when their child or children reached nine years of age. Of the parents who do give their children pocket money, almost nine in ten (86 per cent) say that children should earn the money by carrying out some household chores.
These findings were published on Wednesday by the Teachers’ Union of Ireland Credit Union (TUICU), which commissioned a survey to gather insights from over 800 parents nationwide.
The survey noted the progression from some of the traditional methods of giving pocket money such as cash in notes (48 per cent) and coins (29 per cent), or lodging money in their credit union account (19 per cent), to the growing popularity of digital currencies through apps such as Revolut which 59 per cent of parents said they use.
The TUICU survey also found that two-thirds of parents who give pocket money do so on an ad hoc basis (64 per cent), varying the amounts and timings throughout the week or month. One-third (36 per cent) adopt a more structured approach, giving the same amount on the same day each week or month.
Chief executive of TUICU, Paul Roche, said: “The notion of 'pocket money' is relatively common in Ireland. The average age for starting the routine was found to be nine years of age.
"Giving a child of a certain age a small financial reward can be a really valuable exercise in teaching them financial responsibility from a young age.
"But of course, not all households can afford this practice and there are certainly many other ways to instil healthy money management behaviour in children.
"While 30 years ago a child might have been given a 50p coin once every couple of weeks, it’s fascinating to see how this has developed into more than half of those parents who do give pocket money doing so through digital wallets like Revolut."
Roche said digital apps are a convenient way for parents to give pocket money as the amount arrives in their children's accounts instantly.
"They are also traceable, allowing parents to monitor how their children spend their money. Although it's not for everyone, digital wallets offer an opportunity for parents to teach financial management in a way that is relevant to how children interact with technology today."
Roche said there is a strong belief amongst parents that money should be earned rather than simply given – and for "good reason".
"By linking pocket money to household chores, such as cleaning their room, washing the dishes, or doing the laundry, often parents help their children understand the connection between work and reward. It also encourages them to think about how they spend and save what they earn," he said.
"Getting children involved in financial education can be a valuable tradition, especially with credit unions. Many parents and grandparents have fond memories of bringing their children to lodge birthday or communion money in their credit union accounts.
"This practice not only introduces children to the idea of saving but helps them build a sense of community and belonging. By opening a children’s savings account, parents can encourage their children to set financial goals and understand the importance of saving for the future”.
