Children in the UK are moving away from their piggy banks and towards online bank accounts, according to new research from Halifax.
The bank’s new study claims that two years ago, 80% of kids in the UK owned a piggy bank; however, in 2019, this has dropped to 72%. During this same period, the number of children receiving parts of their pocket money into a bank account increased from 19% to 23%.
Furthermore, 4% of children now receive their pocket money on dedicated apps.
This drive for online banking accounts has largely been down to teenagers. Of those aged between 12 and 15, 32% of girls and 29% or boys have a bank account. Whereas, only 12% of girls and 18% of boys aged between eight and 11 have an account.
Through its research, Halifax also found 39% of boys aged between 12 and 15 went online to manage their accounts, while only 21% of girls in this age range did the same.
Halifax head of savings Giles Martin said, “Whilst almost a quarter of children now receive some of their pocket money into a bank account, there is a still a place for the humble piggy bank, with over 70% of kids continuing to use one. What’s most important though, is for children to start learning about money at an early age, whether that’s with pounds and pennies, or digital currency.”
This drive to online pocket money has been helped by the sprouting of FinTechs offering a specialised account for just this.
One of these companies is Current. The FinTech startup, which recently closed a $20 Series B, offers a teen-focused bank account which lets parents transfer them money, set monthly allowances, implement spending controls and reward chores.
Other findings of the Halifax study showed children are losing the ability to identify certain money. The report claims 82% of eight-year-olds could recognize a one pence coin, while only 69% of 15-year-olds could do the same.
This was also expressed with paper money, with 79% of eight-year-olds able to identify a £10 note but only 72% could do so.
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