Recent findings from Westpac indicate that more than half of Australian children aged eight to 17 are now earning pocket money through household chores. Specifically, the report shows that 55% of these children receive an average of $25 per week, nearly three times the amount their parents received in their youth.
This shift highlights the growing emphasis on financial literacy among younger generations. The findings also underscore the relevance of Westpac’s newly launched Chores feature within its app, designed to assist families in managing chores and the associated pocket money payments. This feature allows parents to create a list of tasks for their children, who receive notifications when their chores are available. Once completed, parents can easily transfer pocket money through the app.
Chris Brell, Westpac’s Managing Director of Everyday Banking, Consumer, remarked on the importance of financial understanding in modern family dynamics. “Parents who are balancing a family budget on a daily basis know firsthand how important understanding money is – and are giving their children pocket money to teach responsible spending and saving from an early age,” he stated.
According to the data, of the three in four Australian parents who provide pocket money, 63% do so to teach the value of money, while 61% use it as an incentive for household chores. Nearly half of these parents, specifically 49%, are using digital payments to facilitate this process.
Tools for Financial Education
The Westpac app offers various tools designed to help parents and children manage their finances effectively. The inclusion of the Pocket Money feature and Savings Calculator enables families to foster open discussions about money management. Brell emphasized that these tools not only track saving and spending habits but also come with robust parental controls to ensure safe financial practices.
Children under the age of 18 who are Westpac customers and set savings goals save an average of just under $1,300 across various objectives. These include funding for a home (average savings of $250.37), education (average of $320.96), and travel (average of $107.40).
As financial literacy becomes increasingly vital, Westpac’s initiatives aim to integrate practical financial education into daily life for young Australians. The Chores feature, along with the Family Hub within the Westpac app, serves as a modern approach to teaching children about earning, spending, and saving money responsibly.
