VIENNA, Austria - June 30, 2020 – Although the trend towards cashless payments is steadily increasing, a large proportion of Austrian parents still rely on cash when it comes to pocket money. A survey conducted by BAWAG P.S.K. and the Austrian Banking Association1 shows that 73% of children between the ages of 6 and 14 receive their pocket money in cash. "Only" 23 % of children receive their money by bank transfer, even though 3 out of 10 already have a pocket money banking account. "Pocket money helps our children to practice handling money and at the same time to develop a feeling for a balanced relationship between income and expenses. However, many parents continue to give the money to their children in cash, although digital payment processes are becoming increasingly important in the everyday life of the young generation. We would therefore like to encourage parents to also include pocket money accounts and cards in the financial education", explains Enver Sirucic, CFO of BAWAG Group and member of the Managing Board of the Austrian Banking Association.
In general, 85% of children in Austria already receive pocket money, 68% of them regularly. Almost half of them receive a monthly amount, 43% weekly. Main reasons why no pocket money is paid: Either the expenses are completely covered by the parents, the children are too young, or the money is only used as a reward.
Older children and boys receive higher amount of pocket money, parents decide amount according to gut feeling
According to survey results, age plays a crucial role in pocket money matters. For example, 96% of children between 11 and 14 years receive pocket money, while for 6 to 10-year-olds it is "only" 76%. The amount of pocket money is also influenced by the age of the child. Primary school children receive an average of €24 pocket money, while older children receive €48. By the way, children who receive their pocket money by bank transfer are ahead of the rest in terms of the amount: they receive an average of €43 per month from their parents, which is €8 more than children who receive it in cash (€35). "When pocket money is transferred to their bank accounts, children benefit twice: they receive more from their parents and at the same time have the opportunity to practice handling money in a safe and secure environment. Pocket money accounts have no overdraft facility. This means that only what is available can be spent. In addition, the children learn to take a regular look at their account and to keep themselves informed about their income and expenses," says Gerald Resch, Secretary General of the Austrian Banking Association.
In addition to age, gender also affects the amount of pocket money: On average, boys receive €41 less, while girls receive €7 less at €34 - even though 71% of girls regularly receive pocket money and thus more often than boys (66%).
Furthermore, 7 out of 10 parents listen to their own gut feeling when determining the amount, 22% exchange their experiences with other parents. Only 15% follow recommendations from teachers or experts. Children who are involved in the decision on the amount of pocket money receive more: they receive an average of 51€ per month - 13€ more than the average amount of 38€.
Styrians transfer pocket money most often, Salzburg's children with the highest amount
The survey also shows that in the Austrian federal provinces pocket money matters are dealt with differently: In comparison, children in Styria receive pocket money most often (39%), and in Carinthia least often (12%). Carinthia also has the highest percentage of children not receiving pocket money (32%), followed by Tyrol/Vorarlberg (24%). Parents provide the most money in Salzburg: there children receive the highest amount of money per month with an average of 53€, followed by Tyrol/Vorarlberg with 43€ and Vienna with 39€. Lower Austria/Burgenland brings up the rear with €32. By the way, fathers are more generous than mothers: they give pocket money of 41€ on average, mothers "only" 35€.
Children pay for snacks and toys themselves, but not for mobile phones and bicycles
It also shows that there are clear rules for the use of pocket money in the local families: According to survey results, 6 out of 10 children must pay for sweets and computer or mobile phone games themselves. 4 out of 10 children also buy toys and reading material such as magazines, books and comics as well as jewelry from their own money. The situation is different for school materials, body hygiene products, clothing and shoes, electronic devices and mobile phone bills, which are all largely paid for by parents. Bigger wishes, such as a bicycle, computer, mobile phone or guitar, do not have to be paid for by 58% of the children themselves, 38% have to co-finance these wishes through savings. 7 out of 10 children can improve their pocket money according to their parents: Good grades (77%), help with kitchen work (41%) or gardening (32%) are among the best arguments here.
1 Online survey was conducted in the first half of 2020 among a total of 1010 parents by the market research company marketmind.
Manfred Rapolter (Head of Corporate & Commercial Communications, Spokesperson)