Billion dollar business pocket money: children have more budget available
The six to thirteen-year-olds and their pocket money are a lucrative target group: every child in Germany can spend an average of 49 euros per month.
In order to determine these figures, the Munich opinion research institute iconkids & youth interviewed a total of 813 children. The result: in 2017, the small German citizens received around 3.4 billion euros. This is an increase of 20 percent compared to the previous year. Most of the money comes from the parents’ regular pocket money. In addition, there are gifts of money, for example for birthdays or Christmas. This means that children have an impressive amount of money at their disposal every month: six to seven-year-olds receive an average of 27 euros per month, of which 15 euros is pocket money. For the eight to nine-year-olds it is 38 euros (pocket money 22 euros). Ten to eleven-year-olds have 53 euros a month at their disposal (pocket money 31 euros), twelve to thirteen-year-olds even have 79 euros (pocket money 43 euros).
Most of the pocket money goes into consumption
“The fact that the Germans are more optimistic and happier about the future in 2017 than a year ago is also shown by the fact that they are once again spending more money on their children. It is in the nature of things that kids spend most of this money on consumption. Finally parents set an example of this, says Ingo Barlovic, managing director of iconkids & youth. Only seven percent of the money received goes into the savings book. Most is spent on sweets and ice cream, 450 million euros a year. This is followed by clothing and jewellery with 410 million euros. Children buy magazines and books for around 290 million euros.
Sweets in 1st place followed by print media
The 2017 children’s media study examined in even greater detail which products young consumers prefer to invest in. To this end, it interviewed over 1,600 children and legal guardians. Sweets, cookies and chewing gum are at the top of the hit list. 50 percent of those surveyed prefer to buy magazines and comics from their pocket money. Toys and games come seventh place. The eighth place goes to stickers and trading cards, followed by collection figures. This study shows that children like to spend their money on goods that are quickly available and do not cost much. This reflects the impatience of many small customers.
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Image: AGrigorjeva / istock