Feb 19 2007
While some parents are electing to invest money in child savings accounts in preference to giving pocket money, a child trust fund (CTF) provider has stated that pocket money can teach children the value of money and engender valuable financial skills.
Engage Mutual Assurance reports that 48 per cent of parents of children under 16 do not give their offspring pocket money, while 41 per cent invest money into a savings plan for their children.
Karl Elliot, 3GB spokesman for the firm, said: "The choice between treating children today and giving them a helping hand in the future can be a fine balance."
He added that children can learn valuable life skills through managing their own money, while parents and relatives can contribute regular payments to CTFs to help their children with the financial pressures of adulthood.
Last month, the Children's Money report from HM Revenue & Customs and Mother and Baby Magazine revealed that 63 per cent of mothers believe children should receive pocket money from the age of five.
