SEB Bank studies Baltic residents’ pocket money habits

According to SEB Bank’s available data, although residents can register a payment card for their children starting from the age of seven, information indicates most children in Latvia receive their first payment card at the age of 16.
Similarly in Lithuania, where children receive payment cards at the age of 15. In Estonia children generally receive their payment cards around the age of 12 – 13.
In Lithuania of all payment card users under the age of 18 only 6% are children aged between seven and nine years. In Latvia every ninth card user is a child aged between seven and nine years. In Estonia children of this age range compose a quarter of all payment card users under the age of 18.
Differences when it comes to the frequency of Baltic children using payment cards are not significant, but it can be concluded that children in Lithuania spend larger amounts of money, whereas children in Latvia are generally the most modest when it comes to card purchases. For example, children in Lithuania aged between seven and nine years make an average of five purchases a month, spending a little over EUR 18. Children in Latvia make an average of four purchases, spending around EUR 12.
Older children use payment cards more actively – children between 13 and 15 years make around 10 (Estonia) to 12 (Latvia and Lithuania) purchases a month. The amounts spent are higher as well – around EUR 46 in Estonia, EUR 40 in Latvia and EUR 50 in Lithuania.

Children aged 16 to 17 years make an average of 20 purchases every month, spending ~EUR 100.

Children in Latvia and Estonia use their payment card the most often to pay for purchases in different stores, whereas children in Lithuania use their payment cards the most often to pay for catering services.
Parents in Baltic States transfer pocket money for their children aged seven to twelve years once or twice a month. Children aged between 13 and 15 years receive pocket money two or three times a month. Youngsters aged between 16 and 17 years receive around five money transfers a month. This includes pocket money from parents and transfers from friends.
Although the number of money transfers is very similar, the amounts themselves differ across both age groups and countries themselves. The average amount across all age groups is the smallest in Latvia and the highest in Lithuania. For example, children under the age of nine in Latvia receive around EUR 15 on average, their peers in Estonia receive around EUR 35, and in Lithuania – EUR 60 a month. Youngsters (16-17 years) receive around EUR 135 a month in Latvia, EUR 160 in Lithuania and around EUR 180 in Estonia. This is the only age group in Lithuania that receives less money than their peers in other countries.
SEB Bank Private Finances Segment manager Elza Rudzīte reminds: banking services for children under the age of 18 are free of charge. “The sooner children gain this experience, the more responsible and independent they will become in their finances-related actions,” said the banker.
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