The GoHenry guide to… earning power

The GoHenry guide to… earning power

 

Learning about earning money is a crucial part of every child’s financial education. That’s why we think it’s so important to pay regular pocket money. It doesn’t matter how much it is – even a small regular amount will help to teach your child about saving and budgeting, and remind them that money is a limited resource: once it’s gone, it’s gone! 

 

As well as receiving pocket money, there are several ways that your child can boost their income, even if they’re too young to get a part-time job. In fact, our latest Youth Economy Report reveals that over 70% of young people in the UK and US now believe that earning their own money is important – and 41% of UK kids say that they already ‘work’ for their pocket money. 

 

Our data shows that GoHenry kids in the UK earned a total of £148 million in 2021, which represents a 9% increase in earnings per child since 2020. But this isn’t simply a result of handouts from generous parents and grandparents, as up to half of young people no longer receive weekly pocket money without being expected to complete tasks in return. 

 

Louise Hill, co-founder and COO of GoHenry says, “With 75% of children agreeing that financial education will help them in their future career, our report findings show how empowering children to earn money from a young age could have a lasting positive outcome on equality and job opportunities in the UK.”

How to pay pocket money with GoHenry

Many parents introduce their children to the concept of earning money by paying a regular allowance. GoHenry makes this quick and easy, and the first step involves adding money to your parent account

  • When you log into your GoHenry app, choose ‘Top up’ and enter your card details and add the amount that you’d like to transfer to your parent balance. This will add funds to your parent account immediately, and pocket money will be automatically transferred on the day you’ve selected for your child’s regular allowance payment. 
  • Select the ‘auto top-up’ option to automatically top-up your parent balance whenever it falls below £5. 
  • To add funds to your parent account by bank transfer you’ll need your account number and sort code. You can find your parent account number by choosing ‘top up’ in your GoHenry parent app, then tapping in your payment method and choosing ‘bank transfer and standing order’. 

You can also transfer funds directly to your child’s account. 

  • If you need to instantly transfer money from your parent balance to your child’s account, you can do this at any time by selecting ‘quick transfer’ in your GoHenry app. Siblings can also use this feature to transfer money between their GoHenry accounts. 
  • You can also send money directly to your child’s account by bank transfer. You’ll need to use their child account sort code and account number, which you can find in your parent app by tapping your child’s name, choosing ‘card’, and then ‘account.’

Your membership fee includes one free parent account top-up per calendar month, after which we will need to pass on a 50p service charge per top up. You can avoid this by making larger top-ups which cover a month’s worth of pocket money plus your membership fee, or making a bank transfer –  but it’s important to be aware that bank transfers are only processed on weekdays and may take up to 24 hours to complete. 

Helping out at home

The amount of money that kids and teens earn from paid tasks – which can be set and marked complete in the GoHenry app – is on the rise. In fact, more than six out of ten (61%) UK kids now earn from completing tasks, which is slightly higher than the amount who don’t have to earn their allowance (69%). 

 

Perhaps unsurprisingly, the most common task is tidying their room, but other popular tasks include vacuuming, homework, loading and unloading the dishwasher and putting clothes away. 

 

As well as being a great introduction to the world of work, paid tasks also help to establish a link between work and money – so you may find that your child develops a more mindful attitude to spending when they consider how hard they’ve worked to earn their money. 

 

First jobs for teens

Getting their first part-time job is a great way to boost your teen’s confidence and introduce them to the adult world of work. Whether it’s a regular weekend gig or a summer holiday job, teenagers are able to get a regular part-time job from the age of 13 – although the number of hours they can work is restricted until they reach the minimum school leaving age. 

 

Some employers may choose to pay in cash, especially if your teen is only earning a small amount from a paper round or babysitting job. However, teens can also have their salary paid directly into their GoHenry account when they share their account number and sort code. This is particularly useful once they reach the age of 16 and may need to be paid via PAYE. 

 

Our data shows that, in the UK, just over a third (34%) of young people have a part-time job of some description. However, it’s not always easy to find suitable work, particularly if you live in a rural area or your teen can’t fit a regular job around their school work and extracurricular activities. This is just one reason why increasing numbers of teens are now choosing to work for themselves in a wide range of roles including social media influencer, selling things online, pet-sitting, online gaming, and even investing in cryptocurrency. 

 

As well as giving them extra flexibility and the opportunity to work from home, being their own boss is a great way to develop an entrepreneurial spirit – which is undoubtedly an asset for the 26% of kids and teens who told us that they aspire to be their own boss in the future. 

Giftlinks

Relatives often find it difficult to know what to buy kids for special occasions such as birthdays and Christmas, which is why we created Giftlinks. Once you’ve created a Giftlink in your GoHenry app – where you can choose to create an everyday Giftlink or select one for a specific occasion – you can then share it with family and friends. 

 

This is a safe and secure way for gifters to send money to your child’s account – and it’s absolutely free. Your child can then decide to put the money towards a special purchase or add it to their savings – which makes much more sense than sending cash in the post, buying vouchers or wasting money on an unwanted gift. 

 

 

Relative payments 

There are times when relatives might want to contribute some money to your child’s GoHenry account too, whether on a one-off or regular basis. Perhaps they deserve a reward for sporting success, an impressive school project or acing an exam. 

 

So we’ve made it easy for generous grandparents, godparents, aunts and uncles to send money to your child’s account. Simply add them as a relative in your GoHenry app, enter their name and email address, and they’ll be sent an invitation to create their own relative account. This is a useful alternative to Giftlinks because it means that money can be sent to all the kids in one family, while a Giftlink is specific to a single child. Relative payments also mean that family members can simply log into their account when they want to send money, and don’t need to hunt for their specific Giftlink.

 

Once the money lands in your child’s account they can choose to save it or spend it – or maybe even use it to buy the supplies they need to start their own business! 

 

 



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Written by Ceri Roberts Published Jun 22, 2022 ● 4 min read