Kids Unaware Of The Cost - Halifax Pocket Money Survey 2010

LONDON, ENGLAND, November 10, 2010 (Press-News.org) Key Findings of the Halifax Survey

- Children are more likely to know the price of a loaf of bread than a packet of sweets
- Half of children do not know the cost of watching TV
- Children are keen to learn more about saving and are looking to their parents for this guidance

Bungling shopping baskets

When it comes to grub, children are unaware of the cost of staple foods. Estimating a pint of milk at 149% more than cost, children think you would pay GBP1.12 for a pint of the white stuff, compared to 45 pence in reality. In the regions, this figure rose to GBP2.00 in Wales with every region citing an average of at least GBP1.00

Surprisingly, this was also the case when it comes to the price of a packet of sweets, with children overestimating this at GBP1.10 compared to the 45pence actual cost. One in ten also admitted to not knowing the price of a packet of sweets perhaps suggesting they are leaning towards healthier options.

However, the average amount suggested for a loaf of bread was much more on the money at GBP1.07, when compared to the actual price of GBP1.27. Children in the East Midlands were virtually spot on with their estimate of GBP1.26.

Communications misjudged

For many, the art of letter writing has been superseded by text and email, so it is unsurprising that children overestimated the price of a stamp. The average amount suggested was GBP1.16 compared to the price of 41pence, although almost a third (29%) did admit they did not know the cost of a stamp. This figure rose to an estimated cost of GBP1.92 in Wales whilst over a third (36%) in the West Midlands admitted to not knowing. In contrast, the cost of a TV license was underestimated at just GBP10.48. This compares to an annual cost of GBP145.50. Almost half of children (48%) admitted they did not know the cost of the license with this figure rising to 57% in London.

Perhaps the most unexpected figure, is the over estimation of the cost of iTunes downloads with the guess of GBP1.84 almost double the actual cost of 99pence. This figure rose to GBP2.40 in the North East and GBP2.30 in East Anglia.

Willing to learn

Although ideas about the cost of goods was some way from reality, children did express a willingness to learn with more than three quarters (77%) wanting to learn more about saving. This rose to 88% in Wales but fell to just 69% in the South West.

It also seems that children are looking to personal role models to teach them about savings with almost two fifths (57%) stating learning from their parents at home as the preferred choice, with a further fifth (20%) looking for guidance from teachers. Just one in ten (8%) wanted to learn over the Internet with one in twenty (5%) opting for the TV.

Flavia Palacios, head of savings products at Halifax, said: "That children want to learn about savings is a very positive sign. This is especially encouraging in the light of the government's announcement to introduce Junior ISAs as this provides an ideal opportunity for parents to start talking to their children about saving. Making saving a shared activity and raising children's awareness of the cost of products is an ideal way of promoting greater budgeting skills in later life."

Note to Editors

Research carried out by tns from 26th August to 2nd September 2010. 1204 children across Great Britain aged 8 to 15 were interviewed.

Halifax Children's Regular Saver

Halifax Children's Regular Saver is available for adults saving on behalf of children under 16, with one account per adult on behalf of each child allowed. Earning a rate of 6.00% AER/gross p.a. fixed for one year, you can save between GBP10 and GBP100 each month, for 12 months. Once the twelve month term is up, the money saved and the interest earned will be automatically transferred into your nominated account, or a Halifax save4it account.

Save4it

Save4it is a passbook pocket money savings account designed especially for children up to 16 year olds. Accounts can be opened with as little as GBP1 and the maximum balance is GBP5,000. Interest is payable annually on any chosen day (e.g. birthday) and the child can choose the name of the account, e.g. 'Sarah's Account' or 'First Bike Account'. The current interest rate is 1.05% AER/gross p.a.

Resources
http://www.halifax.co.uk
http://www.halifax.co.uk/savings/accounts/childrens-savings/childrens-regular-saver/
http://www.halifax.co.uk/bankaccounts/other-bank-accounts/expresscash/
http://www.halifax.co.uk/savings/savingshome.asp