The average weekly allowance has fallen from $10 to $8 over the past year, with New South Wales children receiving the highest average allowance at $11 per week, followed by Queensland and Western Australia.

Finder's money expert, Sarah Megginson, who is also a mother of three, said that some parents are having to be creative with their approach to pocket money, using incentives like extra screen time instead of cash to motivate their children to help around the house.

The report found that almost two-thirds (60%) of parents only give their children pocket money if they complete their chores, with the most common tasks being cleaning their room, doing the dishes, helping with the laundry, and taking out the rubbish.

Megginson added that pocket money is an effective way to teach children about financial responsibility and instil good habits from a young age. She suggests that parents can help their children set up a savings account to benefit from compound interest and learn about managing their money.

While some families (16%) have increased their children's pocket money in the past year, the majority (73%) have maintained the same amount. As parents continue to navigate the challenges of rising living costs, finding creative ways to manage pocket money and incentivise children's contributions to the household may become increasingly important.