There are many things we remember from our childhood — the games we played, the music we listened to; but what about earning pocket money? This was our first ever wage for completing tasks such as tidying our bedroom or sorting the laundry. Our reward was a handful of coins that we safely stashed away. But now, it seems, parents' attitude to handing out cash is changing.
There was a time when cash was king — it was the main currency for financial transactions. These days, though, using credit or debit cards, or making contactless payments, are the most convenient ways of paying. So where does that leave handing over pocket money? Research has found that 84 percent of British parents currently give notes and coins to their children — typically an allowance, including some discretionary spending, of £7 a week.
But banks predict that by 2028 only one in ten transactions will be with cash, and that is something today's children will have to deal with. One particular issue is that children may not understand the value of cash because they never see it. Parents face a dilemma too — finding a new way to transfer pocket money, or maybe not bothering to pay it at all.
Giving children lessons about finance at school is important, and the UK's Money and Pensions Service advises parents to get children started with money as young as possible. Sarah Porretta from the service told the BBC that for parents who no longer carry cash "the trick is to go and get some coins, just so your children have the opportunity to interact with them. Talk about what you are doing with money. If you are paying with a card or with a phone talk to children about that and link it back to those coins they have handled."
But, of course, many of the goods that young people want to buy — such as add-ons for a computer game — only allow digital transactions. This has led to a number of apps being set up that allow children to track and spend their hard-earned pocket money and parents to transfer money electronically and monitor their child's spending. Banks also suggest setting up accounts for older children which gives them a cash card to use. But whatever method a parent chooses to adopt, they need to teach their kids that money doesn't grow on trees!