British kids think an average home costs £1,000

A tenth of British kids think an average home costs £1,000, a survey by Drewberry has suggested.

The poll of 1,000 children aged six to 10 also found a fifth of kids think a brand new car can be bought for the same amount, while one in 10 believed you can get one for less than £100.

Twenty per cent estimate a brand-new iPhone could be purchased for as little as £100, while a tenth believe it would set you back as much as £2,000.

A single banana costs as much as £3 in the eyes of one in five children surveyed, while 24% said they thought a loaf of bread costs more than a fiver.

The study was commissioned by the financial advice firm as they launched a homeschooling money lesson for six to 10 year olds to help parents while on lockdown.

'Simple and fun'

Tom Conner, director at Drewberry, said: "It's great fun to see children's perceptions of money and how much they vary.

"It's tough growing up and not quite knowing how much things cost, and not getting much opportunity to really get to grips with finances.

"But there are some simple and fun ways to help little ones understand, such as going through the receipt on a shopping list with them or even playing games at home which revolve around spending money."

The study also found nearly one in 10 children think it only takes £1,000 to be considered as ‘rich', whereas 57% said £100,000 would make you make you rich.

'As many sweets as they are allowed'

As many as 58% would like to earn a hefty £1m a year when they are older, while the research, conducted via OnePoll, also revealed that young Brits would spend £1m on things such as ‘as many sweets as they are allowed', a Nintendo Switch and a trip to Disneyland.

Nearly two-fifths would very considerately spend £1m on presents for their parents, while others said they want an iPhone or pet puppy.

A tenth of youngsters believe insurance is something to do with the internet or a driving license, while 7% think tax refers to money you pay on things you don't need.

It also emerged the average six to 10 year-old will get just over £15 a month in pocket money, but only 15% will have their mum or dad take care of it until they want to spend it.

Education

The survey also showed that as many as 86% of children agreed it's important to learn about money to understand how to save it, how to spend it and have a better idea of how much things cost.

More than a third also said it is good to learn about finances to avoid spending too much (and getting into debt), while 47% said it can help you earn money in the future.

Encouragingly, 67% have been taught how to add up money and 56% understand how to save money, while a further 48% were clear on how to check change when paying for something and 58% knew how much each coin or note is worth.

Tom Conner, director at Drewberry, added: "Although the survey results and video provide some lighthearted fun, it does go to show that six to 10 year old's are still developing their understanding of money.

"We hope our interactive money lesson on how to become a Pocket Money Expert will be a fun way for parents to further their children's money education and provide a source of entertainment before they can go back to school."

Further reading

UK in lockdown: Beer, baking and business loans

• Individual Protection
• 04 May 2020

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• Topics
• Individual Protection
• Drewberry
• children
• money
• financial education