LONDON, ENGLAND - HARD-UP parents are cutting back on their children's pocket money as the economic downturn starts to hit household budgets, insurer AXA said.
One in six told a survey that they had cut back or even stopped pocket money in the last six months.
Allowances can form a significant drain on home finances, with one in twenty 17-year-olds saying they receive between 100 and 200 pounds (S$270 and S$530) a month from the 'Bank of Mum and Dad'.
Now the global credit crunch could squeeze transactions that typically take place over the kitchen table, with teenagers finding it harder to ease a tenner out of their parents' purses for a night out.
'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,' said AXA's Alison Green.
'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.'
ICM Research surveyed 2,050 adults, including 583 adults for the survey. It also polled 200 teenagers aged between 15 and 17. -- REUTERS
