Are piggy banks on their way out? 

Kids are turning to bank accounts and apps to look after their pocket money…

David Edbrooke
Sub editor
2
minute read
Do you know someone who could benefit from this article?
Posted 5 DECEMBER 2019

Piggy banks are slowly losing their appeal as more kids get their pocket money paid into bank accounts, research from Halifax suggests.

The share of kids using a piggy bank has dropped to 72% from 80% in 2017, the survey shows, while the number receiving some pocket money into a bank account is up from 19% to 23%.

The proportion of kids with bank accounts has remained at 35%.

In addition, 4% of children now ask their parents to pay money into specific pocket money apps.

The rise in bank account use is more common with older children, with 32% of girls and 29% of boys aged between 12 and 15 getting some of their pocket money this way.

And more boys are opting for online banking, with 29% of 12-to 15-year-olds choosing to manage their money this way. In contrast, 21% of girls in the same age group use mobile or internet banking to track their pocket money.

What does a 1p coin look like?

It’s possible that this growing preference for apps and banks is affecting children’s ability to recognise cash and cheques. The research shows that only 69% of 15-year-olds can identify a 1p coin, compared with 82% of eight-year-olds.

It’s a similar story when it comes to paper money, with 79% of eight-year-olds surveyed being able to pick out a £10 note. That’s something only 72% of 15-year-olds could manage.

Only 59% of the survey’s participants on average were able to recognise a cheque.

Giles Martin, Head of Savings at Halifax, 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.”