Spanish children face pocket money pinch

Spanish children are among the biggest losers in Spain's crisis with pocket money totals falling fast, new figures on the spending habits of Spanish households show.

Spanish children face pocket money pinch
Spanish households increased education spending by an average of 7.4 percent in 2012. Photo: Adam Jones

Spanish households are spending an average of just over €9 ($11.85) a year on pocket money, the latest Household Budget Survey by Spain's national stats institute (the INE) reveals.

That means kids have seen their allowance drop by nearly 40 percent in the half decade from 2008 to 2012.

This figure was pulled out of the latest INE survey of household spending in Spain by the country's El País newspaper.

The report shows Spanish households gave out €28,152 in 2012, or 3.4 percent less than a year earlier.

Once the effect of changing prices is taken out, this figure becomes 4.4 percent

The INE report also reveals the average per person spend was €10,999 in 2012.

This figure was highest in the Basque country at €13,648 and lowest in Spain's African exclave of Melilla (€8,244).

In Barcelona, the average expenditure per person was €13,451 while in Catalonia this hit €11,871. 

The largest spending cuts were for cars (down 20.6 percent), clothes (10.5 percent lower) and all inclusive holidays (a fall of 9.9 percent).

Meanwhile, Spanish households upped spending on education by 7.4 percent.

Health care expenditure was also higher than in 2011, although this rise was a small 0.3 percent.

Costs for rent or mortgage, water, electricity and other fuels comprised an average 32.3 percent of household spending in 2012, with the total average outgoings being €9,090.

This weighting was 14.4 percent (€4,141) for food and non-alcoholic drinks.

Transport costs ate up an average 11.8 percent of household budgets in Spain, or €3,321. 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Spain’s middle-class youngsters the most likely to end up poor across all EU

Spain leads the ranking of EU countries with the highest risk of young people ending up in poverty as adults, despite coming from families without economic difficulties.

Spain is the fourth EU country with the highest inherited poverty
Spain is EU country with most middle-class young people who end up poor. Photo: Jaime ALEKOS / AFP

Spain is also the fourth EU country with the highest rate of inherited poverty risk, according to Eurostat, the EU Statistical Office.

Data on intergenerational poverty indicates that there is a correlation between the financial situation of the household you grew up in and the risk of being poor when you reach adulthood and in Spain, there is a strong link. 

The latest statistics available from 2019 show that the at-risk-of-poverty rate for the EU was 23 percent among adults aged 25 to 59 who grew up in a poor financial situation at home when they were 14 years old. This is 9.6 percentage points more than those who come from families without financial problems (13.4 percent). 

READ ALSO: Spain’s inflation soars to 29-year high

How the situation in Spain compares with the EU

Spain has become the EU country with the highest risk of poverty among adults who grew up in families with a good financial situation  – 16.6 percent.

This was followed by Latvia with 16 percent and Italy with 15.9 percent.

That statistics also show the countries where it is less likely to be poor after growing up in households without economic difficulties. These include the Czech Republic (5.9 percent), Slovakia (7.9 percent) and Finland (8.5 percent).

The overall poverty rate in the EU decreased by 0.1 percentage points between 2011 (13.5 percent) and 2019 (13.4 percent), but the largest increases were seen in Denmark (1.9 points more), Portugal (1.8 points), the Netherlands (1.7 points) and Spain (1.2 points).  

On the other hand, the biggest decreases in the poverty rate were seen in Croatia (-4 percent), Lithuania (-3.6 percent), Slovakia (-3.5 percent) and Ireland (-3.2 percent).

READ ALSO: Spain’s government feels heat as economic recovery lags

Inherited poverty

The stats revealed that Spain was also the fourth country with the highest rate of inherited poverty risk (30 percent), only behind Bulgaria (40.1 percent), Romania (32.7 percent) and Italy (30.7 percent).

This means that children of poor parents in Spain are also likely to be poor in adulthood. 

The countries with the lowest rate of inherited poverty risk were the Czech Republic (10.2 percent), Denmark (10.3 percent) and Finland (10.5 percent).

The average risk-of-poverty rate for the EU increased by 2.5 percentage points between 2011 (20.5 percent) and 2019 (23 percent), with the largest increases seen in Bulgaria (6 points more), Slovakia and Romania (4.3 points), Italy (4.2 points) and Spain (4.1 points).

The biggest drops were seen in Latvia (-8.5 points), Estonia (-8.0 points) and Croatia (-2.3 points). 

The largest gaps in people at risk of poverty when they reach adulthood were in Bulgaria (27.6 percentage points more among those who belong to families with a poor economic situation as teenagers compared to those who grew up in wealthy households), Romania (17.1), Italy (14.8), Greece (13.5) and Spain (13.4).