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

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  • Beata Gotwald

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: 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.

Suggested Citation

  • Beata Gotwald, 2023. "Implications of Pocket Money on Young Clients’ Shopping Decisions– International Comparison," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 410-420.
  • Handle: RePEc:ers:journl:v:xxvi:y:2023:i:2:p:410-420
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    References listed on IDEAS

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    1. J. Michael Collins & Elizabeth Odders-White, 2021. "Allowances: Incidence in the US and Relationship to Financial Capability in Young Adulthood," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 533-544, September.
    2. Lu Ma & Zeping Fang & Liwang Gao & Yaling Zhao & Hong Xue & Ke Li & Youfa Wang, 2020. "A 3-year Longitudinal Study of Pocket Money, Eating Behavior, Weight Status: The Childhood Obesity Study in China Mega-Cities," IJERPH, MDPI, vol. 17(23), pages 1-13, December.
    3. Е.V. Shelepova & Samofalov V.I., 2018. "Identifying Branding Features of Products for Children," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 970-984.
    4. Gabriela Fretes & Amapola Sepúlveda & Camila Corvalán & Sean B. Cash, 2021. "Children’s Perceptions about Environmental Sustainability, Food, and Nutrition in Chile: A Qualitative Study," IJERPH, MDPI, vol. 18(18), pages 1-14, September.
    5. Dario Sansone & Mariacristina Rossi & Elsa Fornero, 2019. "“Four Bright Coins Shining at Me”: Financial Education in Childhood, Financial Confidence in Adulthood," Journal of Consumer Affairs, Wiley Blackwell, vol. 53(2), pages 630-651, June.
    6. Maria De-Juan-Vigaray & Monali Hota, 2019. "Children as actors of tomorrow’s hypermarket experience," Post-Print hal-02115745, HAL.
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    More about this item

    Keywords

    Pocket money; children; customer behaviour.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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