Implications of pocket money on young clients’ shopping decisions : international comparison

Abstract

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: The negative impact of pocket money on children's health, such as increased use of electronic devices and obesity, is also a key element to be addressed through social activities. Corporate social responsibility could strengthen financial education by incorporating health education initiatives.

ORIGINALITY/VALUE: A systematic literature review and a desk research method to analyze the spending behavior of children regarding pocket money.