Pocket Money - Non-food and Drink - UK - June 2004

SUMMARY

Children have attained the status of important consumers in their own right of products such as chocolate, crisps, sweets and toys. However, the increasingly sophisticated interests of children today mean that these traditional areas of children's spend have to compete with more 'grown-up' sectors such as clothes and mobile phones.

In order to examine these areas in greater depth, Mintel is for the first time publishing twoPocket Moneyreports. This report concentrates on non-food spending, and is complemented by the second report, which deals with food spending.

Nearly all children aged 7-10 have some form of regular weekly income with just 5% of this age group not receiving any. The majority (72%) receive this from their parents, but 42% receive money regularly from their grandparents. However, some 31% of children receive money from their grandparents and their parents. Only one in five of this age group earn money from chores or odd jobs. The group accounts for more than 400 million in pocket money.

Going shopping is becoming an acceptable leisure activity for teenagers, with around eight in ten 13-16-year-olds shopping with friends. This gives teenagers greater control over decisions about what to buy.

This report examines the key factors which impact children's pocket money in a broad sense. Social, demographic and economic influences are considered, including trends in the UK child population and family living patterns.

TABLE OF CONTENTS

Introduction and Abbreviations

• Definition

Abbreviations

Executive Summary

• Fewer younger children around to spend money
• 7-10s benefit from parental provision
• 15-16s go it alone
• A broad spectrum of promotional tools are used
• Money for nothing
• Toys and games the number one choice
• Earning their keep
• The social spend
• Shopping for fun

Market Drivers

• Population shifts
• Figure 1: Trends and projections in UK population, by age group, 1999-2008
• Figure 2: Average family size for the constituent countries, UK, 1950-2000
• Family structure
• Figure 3: Percentage of dependent children living in different family types, 1972-2003
• Growing wealth of population overall
• Figure 4: PDI and consumer expenditure, at 1998 constant prices, 1998-2007
• Trends in pocket money
• Figure 5: Average weekly income of children aged 7-14, 2001-03
• Figure 6: Average monthly income of children aged 15-16, 2001-03
• Children's savings
• Figure 7: Those who have a savings account at a bank or building society, 7-14-year-olds, 2003
• Figure 8: Those who have a deposit of savings account at a bank or building society, 15-16-year-olds, 2003
• Figure 9: Amount of money saved up, 7-10-year-olds, 2003
• Disparate markets
• Children's influence on spending

Market Overview

The 7-10s

• Figure 10: Usage and provision of books, children aged 7-10, 2003
• Ownership of computer games/consoles nearly universal
• Figure 11: Ownership of computer games consoles and hand-held games and provision of computer games, children aged 7-10, 2003
• Older girls pick up magazines
• Figure 12: Usage and provision of magazines/comics, children aged 7-10, 2003

The 11-16s

• Figure 13: Purchasing of new clothes in the last year, children aged 11-16, 2003
• CD singles a hit with older children
• Figure 14: Purchasing of records/tapes/CDs, children aged 11-16, 2003
• More than half buy their own magazines
• Figure 15: Usage and provision of magazines/comics, children aged 11-16, 2003
• Teens the main influence in personal product brands
• Figure 16: Usage of selected toiletries, by gender and age, children aged 11-16, 2003
• Girls only
• Figure 17: Usage of selected toiletries and make-up, girls aged 11-16, 2003
• Boys only
• Figure 18: Usage of selected toiletries, boys aged 11-16, 2003

Advertising and Promotion

• Focus on games
• Figure 19: Main monitored media advertising expenditure on select games suppliers, 2000 and 2003

The Consumer - Age 7-10

• Amounts of money received
• Figure 20: Total annual spending power of those aged 7-10, 2003
• Older kids command more spending power
• Figure 21: Weekly income, 7-10-year-olds, by demographic sub-group, 2003
• Socio-economics have little impact
• Figure 22: Annual additional income, 7-10-year-olds, by demographic sub-group, 2003
• Where the money comes from
• Figure 23: Regular sources of income, 7-10-year-olds, by gender and age group, 2003
• Grandparents factor in
• Figure 24: Additional sources of income, 7-10-year-olds, by gender and age group, 2003
• How they spend the money
• Figure 25: How 7-10-year-olds spend their money, 2003
• Purchases diversify as early as age 9
• Figure 26: How 7-10-year-olds spend their money, by age, 2003
• Girls more likely to buy everything except games
• Figure 27: How 7-10-year-olds spend their money, by gender, 2003
• In-home entertainment makes up the majority
• Figure 28: How 7-10-year-olds spend their money, the four most popular choices, by demographic sub-group, 2003
• Girls start shopping
• Figure 29: How 7-10-year-olds spend their money, the next five most popular choices, by demographic sub-group, 2003
• Mobile phones
• Figure 30: Ownership of mobile phones, by youths aged 7-10, 2003
• Shared responsibility for payment
• Figure 31: Who pays for calls, children aged 7-10, 2003
• Figure 32: Who pays for calls, children aged 7-10, 2003

The Consumer - Age 11-16

• Amount of money received
• Figure 33: Annual spending power of those aged 11-16, 2003
• Figure 34: Total annual spending power of those aged 7-16, by age, 2003
• 13-14-year-olds are key
• Figure 35: Weekly regular income, 11-14-year-olds, by demographic sub-group, 2003
• Children of single parents rake it in
• Figure 36: Annual additional income, 11-14-year-olds, by demographic sub-group, 2003
• Additional income beyond earnings and pocket money for 15-16s
• Figure 37: Annual additional income, 15-16-year-olds, by demographic sub-group, 2003
• Where the money comes from
• Figure 38: Regular sources of income, 11-16-year-olds, 2003
• Figure 39: Sources of additional income, 11-16-year-olds, by gender and age group, 2003
• How they spend the money
• Figure 40: How 11-16-year-olds spend their money, 2003
• Older children slow down savings
• Figure 41: How 11-16-year-olds spend their money, by age group, 2003
• Figure 42: How 11-16-year-olds spend their money, by gender, 2003
• Girls' spending on appearance rises with age
• Figure 43: How 11-16-year-olds spend their money, by gender and age, 2003
• Household size has little impact
• Figure 44: How 11-16-year-olds spend their money, by number of children in household and single-parent families, 2003
• How much do they spend?
• 11-14s
• Figure 45: Average weekly spend, 11-14-year-olds, 2003
• Girls devote their earnings to clothes
• Figure 46: Average weekly spend, 11-14-year-old girls, 2003
• Boys spend on computer/video games and going out
• Figure 47: Average weekly spend, 11-14-year-old boys, 2003
• 15-16s
• Figure 48: Average weekly spend, 15-16-year-olds, 2003
• Nearly one-fifth of teen girls' spending on clothes
• Figure 49: Average weekly spend, 15-16-year-old girls, 2003
• Boys begin to spend more on their appearance
• Figure 50: Average weekly spend, 15-16-year-old boys, 2003
• Clothes a major weekly expenditure
• Figure 51: Weekly spending on clothes, 11-14-year-olds, 2003
• Figure 52: Weekly spending on clothes, 15-16-year-olds, 2003
• Music a major interest, even with the younger children
• Figure 53: Weekly spending on records/tapes/CDs, 11-14-year-olds, 2003
• Figure 54: Weekly spending on records/tapes/CDs, 15-16-year-olds, 2003
• Girls spend more money more frequently on magazines
• Figure 55: Weekly spending on magazines/comics, 11-14-year-olds, 2003
• Figure 56: Weekly spending on magazines, 15-16-year-olds, 2003
• C2DEs spend more overall on their own toiletries
• Figure 57: Weekly spending on toiletries and cosmetics, 11-14-year-olds, 2003
• Figure 58: Weekly spending on toiletries and cosmetics, 15-16-year-olds, 2003
• Leisure tech products compete strongly for teens' spending
• Even younger boys tend to spend on video games
• Figure 59: Weekly spending on computer/video games, 11-14-year-olds, 2003
• Figure 60: Weekly spending on computer/video games, 15-16-year-olds, 2003
• Focus on mobile phones
• Figure 61: Ownership of mobile phones, children aged 11-16, 2003
• Figure 62: Who pays for line rental and calls, children aged 11-16, 2003
• Substantial (and rising) impact on mobile industry
• Figure 63: Monthly bill for mobile phone, 11-16-year-olds, 2003

The Future

• The role of grandparents
• The quickly maturing youth market
• Mobile phones
• Shopping is a leisure activity
• Buying on the Net

Forecast

• 7-14s
• Figure 64: Forecast of the average weekly income of 7-14-year-olds, 2003-09
• 15-16s
• Figure 65: Forecast of the average monthly income of 15-16-year-olds, 2003-09
• Figure 66: Forecast, comparing growth of average incomes of 7-14s and 15-16s, 2003-09
• Technology the biggest spend competitor
• Factors incorporated