Children's Pocket Money Stands at €2.5 Million per Month
Estonian children receive a total of 2.5 million euros of allowance money each month, said Piret Suitsu, head of Swedbank’s Institute of Private Finances.
According to Suitsu, both schools and parents should educate children to more responsibly manage their money. Saving allowances is not a widespread habit among youth, said Suitsu, adding that the amount of children’s pocket money was "somewhat comparable" to the sums in Nordic countries.
In addition, children significantly affect the purchasing decisions of their parents, which both businesses and advertising companies are well aware of, Suitsu told Kuku Raadio.
Young people are financially dependent on their parents for a long time, according to Suitsu. “Research shows that parents even support 30-year-old employed offspring.”
If a person needs to purchase something more expensive or has run out of money before the next payday, a common solution is to turn to the parents, Suitsu said.