Children are worth £5bn to the UK economy

Mon Nov 23 2009 14:25:14

Spending by young people contributes nearly £5 billion to the economy each year.

The research, carried out by the London School of Economics and O2 Money, has uncovered, for the first time, the spending power that Britain's children and teenagers are wielding, even during times of recession.

The average child receives £6.84 pocket money a week, more than 500 per cent more than the £1.18 they were given in 1987. On top of this, children get a further £6.34 a week through part-time jobs, money for doing household chores and gifts.

Overall, the groups calculate that the average child will spend more than £6,000 between the ages of seven and 15, the equivalent of £10.27 per week for seven to 10 year olds, rising to £15.25 among those aged between 11 and 15.

This unprecedented spending power means that these youngsters are handling more cash than any generation before them and despite a fall in parental disposable income, spending by young people continues to rise annually.

Unsurprisingly, girls spent twice as much of their money on clothes and shoes as boys, who were more likely to spend their cash on technology and computer games. But children of all age groups were most likely to spend their pocket money on sweets

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