Pocket Money 'Should Be Earned, Not Expected'

Pocket money should be earned, not expected, according to Dragon's Den star Sarah Willingham.

The businesswoman and former owner of the Indian takeaway chain Bombay Bicycle Club said money saving skills are vital for children to help them learn how to make the best decisions when offered credit in later life.

It comes as a survey found that parents rank celebrities higher than teachers when it comes to who has the biggest influence on children's attitudes and behaviours towards money.

While 68% of parents ranked themselves as having a big influence, 14% opted for celebrities, and just 10% opted for teachers.

Ms Willingham said: "All we can ever do is give our children the tools to be able to make educated decisions. And what scares me is that we're not giving them the tools to make those educated decisions.

"It looks like free money, that's the problem. By encouraging kids at a really young age to earn that money, not just handing it out, and to save for things is a great place to start, because often that conversation is child-led.

"There's nothing wrong with credit when it's done properly. In the business world it's often essential. You've got to be able to deal with it and understand what it is that you're getting into.

She (Munich: SOQ.MU - news) added: "There are all sorts of ways kids can earn their pocket money, from washing the car to walking dogs - whatever works for you as a family. But the point is that pocket money should be earned not expected."

The survey found that 10 to 14-year-olds were the most likely to have to earn their pocket money.

Fifteen to 18-year-olds were the least likely to have to earn their pocket money.

Meanwhile, 86% of parents with children aged between five and nine who give pocket money said their children do not always earn the money.

More than half (59%) of parents who give their children pocket money do so every week, forking out £8.07 on average.