Children are pocketing cash from generous grandparents

The 35 per cent of children who receive pocket money from Gran and Granddad score between £4 and £6 per week – while a lucky 19 per cent get £10 or more per week.

On average, children across the UK are getting £6.08 from their grandparents, up from £5.45 last year.

Not to be out done by grandparents, kids report that their parents or guardians are giving them an average of £7.12 a week, up 13 per cent (£6.28) from last year.

The majority of children are putting away at least some of their pocket money and around a third think they save the right amount.

A quarter are saving more than half of their pocket money and 14 per cent are saving all of it. Only 21 per cent of kids are failing to stash away any cash – up slightly from 18 per cent last year.

Giles Martin, head of savings at Halifax, said: “Giving your children the opportunity to manage their finances from an early age will build fantastic life habits down the line.

“By giving a regular pocket money allowance, children can start to appreciate the value of money and save for something they really want.

“To really inspire good habits, use savings accounts to teach children about interest rates and how to manage accounts, alongside talking to your children about bills and how different things cost money. You could even get them involved in the weekly shop to help manage the family purse strings.”

Children’s savings are typically put towards their hobbies and activities – 32 per cent are saving for computer games, 27 per cent for new clothes, and 23 per cent for toys.

However, it’s not all for personal gain, with 17 per cent reporting that their savings will be going towards gifts for other people.