More than half of parents (54 percent) regularly transfer extra money on top of their pocket money via a payment request. This is evident from research by Buut, the ‘youth bank’ that ABN Amro started this year. The team behind it also developed the payment method Tikkie.
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The researchers see that children are often creative to persuade their parents to pay for a visit to McDonalds or the purchase of an item of clothing. This is expressed in creative Tikkie requests such as: ‘for a sandwich foundation for son’ or ‘because I am worth it’. Or a simple ‘Help me through the month’.
Extension of pocket money
“Many parents do not realize how much these small amounts add up and that their children actually receive a second, invisible form of pocket money,” the researchers note. One in four parents now sees Tikkies as an extension of their pocket money, but only 10 percent therefore reduce the monthly amount.
Teenagers mainly spend their money on snacks (62 percent), gifts (29 percent) and clothing (26 percent). In today’s digital world, pocket money flies through more quickly, Buut can see from the spending pattern. “Children opt for a snack in the canteen now, while they are actually saving for that PlayStation later. Impulsive spending provides little control over what comes in and goes out.”
“At Tikkie we already saw that amounts regularly go back and forth between parents and children,” says Sanne van Kuijk van Buut. “That prompted us to do more research. Our results show that parents unconsciously often give more money than they think.”
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More than 1 in 5 young people say they lose their own financial overview due to payment apps and online transactions. A Tikkie is therefore quickly sent to one of the parents, says Buut.
Keep the conversation going
“Parents want to set a good example, but are also inclined to help if their child is in a difficult situation. Very understandable,” says Johanneke Mijnhardt, expert in the field of financial education. “But it is important to continue to have the conversation about money.”
The Money Wise platform recommends giving children aged twelve a monthly pocket money of 20 to 22 euros. This increases to 25 to 35 euros for fifteen-year-olds and 40 to 50 euros for eighteen-year-olds.