Implications of Pocket Money on Young Clients’ Shopping Decisions– International Comparison

Beata Gotwald
European Research Studies Journal, Volume XXVI, Issue 2, 410-420, 2023
DOI: 10.35808/ersj/3178


Purpose: The paper’s main goal was to diagnose the customer behaviour of young customers in terms of the pocket money they receive. Design/Methodology/Approach: Along with the changes in the role of children in the family, their role in the purchasing process is also growing. Autonomous decisions of children are related not only to the perception of their role in the family but also to the fact that they start receiving pocket money. Despite that – the analysis of children’s customer behaviour is neglected. After the systemic literature review, desk research was conducted (including the scientific papers and business literature). Findings: The key findings were that the amount of money children receive grows as children get older. Young clients prefer spending their money on sweets and toys, but as time passes – they change their preferences toward online products. Similarly, older children more often receive online money instead of cash. Pocket money is correlated positively with overweight, self-destructive behaviours and more extensive economic awareness and knowledge. Practical Implications: This research reveals critical implications for educational initiatives and policy-making. It highlights the importance of financial education programs tailored to the contemporary context of children's digital spending habits. The observed gender disparity in pocket money allocation necessitates equity-focused interventions from an early age. Moreover, the link between children's earning activities and health impacts advocates for the incorporation of health education into financial literacy initiatives. Finally, the study indicates an opportunity for corporations to enhance their social responsibility efforts by supporting comprehensive financial and health education for the younger generation. Originality/value: This study offers a unique perspective by examining children's customer behaviors through the lens of pocket money management in an international context. The multi-faceted analysis, extending from consumption patterns to health implications and gender disparities, enriches our understanding of childhood economic socialization. In particular, the exploration of digital spending habits and the evolving nature of children's financial autonomy in the face of modern challenges presents novel insights. The implications underscore the need for multifaceted financial education strategies, opening avenues for further research in this emerging field. Thus, the value of this research lies in its potential to inform more nuanced, effective, and equitable approaches to youth financial literacy and policy-making.

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