The Irish League of Credit Unions (ILCU) Teens and Money recently released their survey on the pocket money habits of Irish parents and their teens. The ILCU revealed that the average Irish teen receives €13 a week, this is, for approximately 20 percent of teenagers, an increase on last year’s ‘rate’.
The survey also found that 80 percent of today’s teens have a savings account either with the credit union, the bank or the post office. According to the findings, most Irish parents believe the school system should be doing more to educate students on managing finances.
Speaking to the John Murray Show, on RTE Radio 1, this morning one 19 year old student said that he received money from his mother to buy two packets of cigarettes and eight cans a week. Another young girl said she received €50 a week until she was 18 years old but explained that this was “whittled away” quite quickly on going out.
Financial advisor, Frank Conway and psychologist, Sarah O’Doherty also spoke on the show about the question of pocket money.
Conway maintained that “instilling a sense that money is finite from a young age” is very effective for teaching children about spending and saving. He also suggested that pocket money be given from about five years of age.
Sarah O’Doherty explained the importance of giving the child some independence with their finances. She said that the pocket money should be their money to do what they like with, even citing her own seven year old, who apparently bought a pair of handcuffs, as an example. O’Doherty had a clever take on the pocket money scheme. She essentially has a basic rate for her children, which they can then increase by completing extra chores around the house.
Frank Conway also suggested showing children a household budget to give them a stronger sense of incoming and outgoing funds. This echoes a piece, “Why you should tell your children how much you make” featured in the New York Times a few weeks ago. The article described how father of six, Scott Parker, once withdrew his entire month’s salary in $1 bills and divided the money into separate piles for bills, family treats, extracurricular activities to give his children a vivid illustration of what it takes to maintain a household.
Invariably teens get a pretty bad rap when it comes to this kind of debate, but this survey actually shows that our teens are remarkably clued in. It was heartening to discover that 75 percent of the teens who receive pocket money save a portion of the money, many of whom are saving up for phones, computers and holidays. 17 percent are even saving for third level education. Sarah O’Doherty believes that this generation are, in fact, less consumerist than previous generations. “There is less emphasis on labels and having stuff than five or six years ago.”
