50% parents not paying pocket money

Around half of British parents are not giving their children weekly pocket money, but saving for the future instead, a financial group has found.

Some 41 per cent are depositing funds into a savings account, with 48 per cent doing so while not giving their offspring a weekly spending amount, according to Engage Mutual Assurance.

The organisation's statistics also revealed that mothers and fathers in the north-east are the most generous, with 65 per cent giving their children money to spend, compared to 39 per cent in the West Country.

However, a further 34 per cent of parents did both - something Karl Elliot, spokesman for the body, claimed was a positive thing.

"Giving younger children pocket money not only helps to educate them about the value of money, but also teaches them important life skills such as saving and budgeting," he said.

In December 2006, the amount of personal debt in the UK reached £1.25 trillion, according to the money charity Credit Action.

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