Pocket money cut through credit crunch

According to a recent report many kids have seen their pocket money cut as a result of the global credit crunch, as their parents struggle to keep on top of repayments and cope with higher living costs, all of which have impacted heavily on household finances. Research was carried out by AXA insurance with regards to changes in terms of kids’ pocket money.

One in every six that were polled as part of the survey said that they had either cut down on or even stopped their kids’ pocket money due to difficult financial times. Many kids and teenagers are now likely to find that it is harder to get the money that they need from their parents.

An official from AXA said: “Over half of the teenagers we polled said their parents give them money if they run out, and one in five knows they will get what they want if they are persistent enough.” She added: But all that may change as parents find their finances stretched to breaking point for the first time in years. Parents are getting tough and kids are not going to like it.”

The data shows that it is not just the nation’s adults that are being affected by the credit crunch that has caused so much havoc in the financial markets, as the knock on effect is also impacting on kids’ financial situations.