Money Advice Service research has revealed that 45% of parents say their children are more likely to pester them for money or to buy them things in the lead up to Christmas.
‘Pester power’ is the ability children have to convince their parents to buy something, by asking for something repeatedly. A third of parents (33%) say pester power regularly gets the better of them, and worryingly, a third (33%) report that giving in to pester power has caused them to over-stretch their finances, meaning they’ve been overdrawn or taken on new lines of credit to pay for the extra expense.
Sarah Porretta, Director of Financial Capability at the Money Advice Service, said “It can feel like there is a great deal of pressure to spend over Christmas, but it’s never worth putting yourself through stress and worry in the New Year or getting into debt you can’t manage.”
“An effective way to manage your child’s expectations is to include them in the Christmas planning process. Our research shows that including children in the budgeting process teaches them the value of money, which helps resist pester power.”