Little brats and pocket money
Parents around the world ask themselves the following questions: Don’t we give our children too much pocket money? Should we give them more pocket money? Or more directly to their own children: How much money do Johnny, Tita, Lisa, Atrin or Topan get?
BOI won’t provide the answers to these questions, because we very well know the immense impact our research articles can have. We don’t want to cause trouble for the parents, especially in Indonesia, by encouraging children to start complaining that BOI said “I should get more money.” Therefore we will only provide you with an estimate for the end of 2015 on how much pocket money the children in Indonesia on average get. Taking into account inflation, the estimates are based on our own historic data. The result is surprising. From year to year BOI projects a big increase in the amount of pocket money children get. Before we tell you the details, we need to note that these amounts apply to children from households within the social economic statuses B, C1 and C2.
We expect that the average pocket money per child per day will be Rp. 13.250. This is equal to 1 US Dollar per day. Per month this totals to Rp. 265.000 to Rp. 397.500, depending if the child gets pocket money every day or only during school days. We expect that the oldest children in the age category 16 to 19 in SES B get the most pocket money at the end of 2015. They are also the ones who are projected to experience the highest increase. The biggest relative increase will be experienced in the same age category for SES C2. This might be an indication that the financial welfare for this group grows the fastest.
Besides estimating the amount of pocket money the Indonesian youth gets, BOI also predicts on what products they will spend their money. Across all age groups, a fast majority will spend money on drinks. For the oldest two age categories, a good second is snacks. Only a small part of the children will spend it on transportation. This seems odd since it seems logical to think that a bigger part of the 16 to 19 year olds have to travel to get to school or university. In contrast, 7 out of 10 of those aged 13 to 19 will spend their money on clothes. Of the younger two age categories, relatively more of them will spend their money on toys, which of course is not difficult to imagine why. However, this group also knows very well what it is to save money. Around 60% of them is expected to actually save money. Though, starting from 13 the amount of children that saves money goes down while age goes up. It might be explained by the fact that a higher percentage in the older category spend their money on movies.
Overall, maybe Indonesian children migth seem little brats with regard to our estimates. So for all parents in Indonesia, if you give your children less than what we predict, do not let them read this article. We are not responsible for the financial consequences.