Since the onset of the global credit crunch in the UK last summer many households and individuals have suffered in a number of ways. Credit conditions have become very tight, borrowing has become more expensive, and the economy has been heading downhill fast. On top of this households have had to cope with rocketing inflation levels fuelled by increase petrol costs, rocketing food prices, and hiked up bills, all of which have put real strain on household finances.

However, according to a recent report it is not just the adult consumers that have been suffering as a result of the global credit crunch, as the credit squeeze and the rise in living costs has also hit kids’ pockets hard as well. The report suggests that many parents are cutting back on the amount of pocket money that their kids receive because of the difficult financial situation that they face. The data comes from a survey carried out by AXA insurance.

The results of the survey showed that around one in six parents had either cut back their kids’ pocket money or had even stopped their pocket money altogether over the past six months, with many struggling to keep on top of their essential payments. The research therefore suggests that an increasing number of kids and teenagers are likely to find things more difficult financially because their parents cannot afford to give them money when they need it.

An official from AXA said: “Over half of the teenagers we polled said their parents give them money if they run out, and one in five knows they will get what they want if they are persistent enough. But all that may change as parents find their finances stretched to breaking point for the first time in years. Parents are getting tough and kids are not going to like it.”

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