Passing on wealth...every week!14 June 2021
With half term over and the children back in school, I think it would be great to start with a look at the way pocket money habits have changed over the last historic year, with a recent survey (May 2021) out from the Halifax. It is interesting to note some of the variances this survey shows.
UK pocket money survey from the Halifax
The Halifax produces a pocket money survey in the spring/summer of each year. The 2021 Halifax survey was released in May this year and makes interesting reading.
It notes that pocket money has dropped slightly to an average of £6.48 per week (£7.55 average reported in 2020). To put this into context, the survey found that 59% of children are aware that the financial position in their home had changed during the pandemic.
A quarter of British children started gardening during the lock-down periods to help their parents. 15% started looking after their siblings and 10% did the shopping for a vulnerable person. These are all jobs that children weren't doing before lockdown. A further 32% also took on new general housework tasks. Interestingly, this wave of industriousness doesn't seem to have been driven by pocket money – two thirds of parents said that they hadn't used this as an incentive for their children to help more.
Apparently around 44% of children also regularly receive money from their grandparents, on top of their pocket money from parents, and 8% of parents think grandparents should give more to grandchildren. Gifting to younger generations can be an effective way of reducing an IHT bill, and there are a number of tax efficient ways of making gifts, although these should always be discussed and planned carefully with a suitable adviser.
More on this topic can be found on the Lloyds website here:
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Passing on wealth to future generations is of course an important topic and if you would like to consider further the ways that this can be achieved through financial planning then please contact the team at Chapters Financial. No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
CFP Chartered FCSI
Chartered Financial Planner
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