British children hold GBP £5.5bn in savings & cash

British children aged eight to 15 hold £5.5 billion in money and savings, according to Hyperlayer, based on a YouGov survey of more than 2,000 UK children.

The research estimates that about 6 million children in that age group hold money in cash, bank accounts, piggy banks and specialist children's money apps. It found that 41% keep money in a traditional bank account, leaving an estimated £3.2 billion held elsewhere by about 3.5 million children.

The figures point to a sizeable youth money market that sits partly outside mainstream banking. They also suggest many children are building financial habits well before adulthood, whether through spending, saving or earning their own income.

Most of those surveyed said they had money of their own. The findings show that 96% of UK children hold money, 69% have up to £500, and 21% have more than £500.

The data also suggests regular income is common. More than four in five children, or 83%, receive money at least once a month, while 45% get money at least once a week. Just over half, 53%, said they work for their own money at least once a month.

Children also reported a mix of saving and spending habits. A quarter said they save their money for later, while 54% said they spend some and save the rest. Only 18% said they spend it all quickly.

How children earn

Household tasks remain a major source of income. The survey found that 46% earn money through chores at home, while 21% make money by helping family and friends with activities such as babysitting or running errands. A further 61% receive an allowance from parents.

Some are also making money by selling goods. The survey found that 13% of children do this, rising among older teenagers in the age group. Among 15-year-olds, 19% said they earn money by selling items online through platforms such as Vinted, Depop and eBay.

The findings also suggest differences between boys and girls. They receive gifts at similar rates, 67% and 66% respectively, but boys were more likely to say they earn money every day, at 9% compared with 5% for girls.

That gap extends to expectations about later life. The survey found that 26% of boys expect to be rich as adults, compared with 19% of girls, pointing to an early divide in financial confidence.

Confidence drops

One of the more striking findings is that optimism declines with age. Among eight-year-olds, 35% said they believe they will be rich as adults, but that falls to 15% by age 15.

At the same time, the share of children who think they have little chance of being rich rises sharply. Only 7% of eight-year-olds held that view, compared with 22% of 15-year-olds.

The survey also asked children about financial difficulties. Saving for things they want and resisting the urge to spend too quickly were both cited by 41% of respondents, while 38% said deciding what to buy was a main struggle. A quarter, or 25%, said social media directly causes them to spend more.

Rob Rooney, Co-Founder and Chief Executive Officer of Hyperlayer, said the figures show children already play an active part in economic life. "Generation Alpha is an emergent force in the global economy and should be taken seriously. Their potential influence on household finances is huge, with projections suggesting they will have access to £4.05 trillion by 2029. Across the UK, they are already holding billions, much of it outside banks.

"While they may not be applying for mortgages and credit cards just yet, these findings show children are an active and influential part of the economy, not just passive receivers of pocket money. Concerningly, we can see that their financial confidence collapses as they approach adulthood, though that is not surprising given the economic circumstances they and their parents have lived through.

"There is an irony to these findings: banks have something fintechs do not yet have - decades of trust. They are in the perfect position to serve this generation and their families. The cheapest customer a bank will ever acquire is the child of a customer it already has."

Parents interviewed alongside the survey said children are more exposed to financial tools and spending opportunities than earlier generations. Some said digital payments and online content have made money both easier to understand and easier to spend.

Raheem, a father from Kent with a 13-year-old son, said: "We live in a digital age, and kids have so much information at their fingertips. Our son reads about crypto online - he even gives us, his parents, advice about it from what he has read. He got his first device in 2020. The downside is that it is too convenient and too easy to spend money."

Corrine, a mother from Leicestershire with a 15-year-old son, said: "Kids know more about money today than we did at the same age. Things like Apple Pay also make spending more convenient, which can be dangerous. The risk of children going to a convenience store every day after school is much greater when they can just tap a card."

Sarah, a mother from Glasgow with a 12-year-old child, described a more structured approach to budgeting and saving through a payment card, gym membership and income from online sales set aside for a family holiday.

She said: "My son is 12. I got him a card about a year ago and we give him £20 a month. Out of that, he actually only gets £9 because he has joined the gym, which is £11. Aside from that, he likes to sell things on Vinted, so all the money from that goes into a pot for when we go on holiday in the summer."