Pocket Money Better Up North

Latest research from Mintel finds children living in the North raking in considerably more income than their Southern contemporaries. Affluent parents are considerably less generous towards their children than those in lower income families. Meanwhile, Mintel forecasts a promising outlook for Britain's youth, with children's weekly income set to grow by a promising 15% between 2002 and 2006.

Of the 5,857 children questioned, those aged between 7 and 10 years old, living in the North receive an average of £3 pocket money/allowances a week, whilst children living in the South receive just £2.67. Similarly, at this age, some 13% of children in the North receive £5 or more a week, compared with just 9% in the South. Meanwhile, 17% of 7 to 10 year olds in the South receive under £1 per week, this compares to just 12% of children in the North. The North/South income divide is also evident among the 11-14 year old age group, but with a gap of only 28 pence (£6.67 in the North, £6.39 in the South).

In terms of additional income, i.e. gifts from parents, the 7 to 10 year olds living in the North earn on average £129 a year, which is £4 more than those in the South. For children aged 11-14, this discrepancy is much more pronounced, at £17 a year (South £149, North £166).

Lower income parents are considerably more generous towards their children than more affluent parents. Among the 7-10 year-olds questioned, a child from a less well off C2DE family receives a regular weekly income of £2.97, plus an additional £127 per annum, compared to £2.55 per week and £120 per annum for better off ABC1 children. Once again the gap is apparent, but inpercentage terms much smaller, for the 11-14 age group.

Some 16% of 7-10 year olds say that their parents buy them everything they want. One in three feel that they spend money without thinking while the same number admit that they are no good at saving. Saving becomes considerably harder with age, by the time children reach the ages of 11-16, some 46% are of the opinion that they are no good at saving. Around the same number say that they spend money without thinking. 'Research suggests that the understanding of money possibly deteriorates rather than improves with age' comments James McCoy, Senior Consumer Analyst.

Just 12% of the 7-10 year olds with parents from the more affluent ABC1 socio-economic group claim that their parents buy them everything that they want, while with children from the C2DE socio-economic groups this percentage is far higher at 20%.

Mintel estimates that a child's weekly income will grow on average by a promising 15% between 2002 and 2006, to reach a figure of £7.73p per week. This should more than offset a fall in the number of children between 7 and 16, by 2% over the same 5 year period. The total annual spending power of UK children will exceed over £3 billion in 2006, rising from over £2.7 billion in 2002.

The number of 7-14-year-olds is projected to fall over the next five years, whereas the number of 15-16-year-olds will grow. Innovative products will be vital in holding children's fickle loyalty in the younger age group, says Mintel, encouraging them to spend and halting any possible decline, whereas markets that hold appeal for older teenagers, such as CDs, cosmetics and toiletries, will continue to boom.

'Pocket Money' is available from Mintel. Price: £545. Further details from Amanda White on 020 7600 5703. Web site: www.mintel.com

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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