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Mar 29

RISING LIVING COSTS: PARENTS STRUGGLE TO AFFORD PHONES FOR CHILDREN

Reading Time: 4 mins

Right now, when it comes to personal finances, it feels like another week another problem. 

Food is more expensive. Electricity is more expensive. Petrol is more expensive.  

Rishi Sunak’s uninspiring Spring Statement last week tees up what is supposed to be “a year of economic misery ahead”. Especially with Rishi ruling out extra government support for the soaring energy bills.  

But those with children are feeling it even harder according to new research – parents are having to prudently manage all the increasing costs associated with raising kids in 2022, including affording phones for them.  

 

PARENTS FINDING IT DIFFiCULT TO MANAGE ALL THE COSTS  

A new research study by Swycha, a website that sells refurbished iPhones ideal for children, has identified just how difficult it currently is for parents to manage the costs of financially supporting their children in 2022.  

The new research study interviewed 2000 parents to initially assess how affordable buying phones for children is at the moment.  

But the study uncovered that in general, 3 in 4 parents say they are finding it hard to manage rising living costs and still afford food, clothes, sports clubs, presents etc for their children. 

Swycha asked parents what their current financial headaches were and identified that the most difficult costs for parents to manage right now are: 

  1. Rising energy costs (gas and electric) – 70% parents said this was an issue
    2. Rising food process – 64% parents said this was an issue
    3. Rising fuel prices – 58% parents said this was an issue
    4. Finding money to give children spending money – 42% parents said this was an issue
    5. Affording birthdays and Christmas’s – 42% parents said this was an issue
    6. Education costs (uniforms, lunches, clubs etc) – 33% parents said this was an issue
    7. Direct debits – 31% parents said this was an issue
    8. Parents finding money for own leisure – 25% parents said this was an issue
    9. Increasing NI contributions – 15% parents said this was an issue
    10. Other – 4% parents said this was an issue 

The survey also found that the top 5 cutbacks that UK families are making to adjust are: 

  1. Not going on holiday this year
    2. Cutting back on heating, electricity, or water
    3. Food shopping – switching supermarkets, switching home brands, no organic food
    4. Parents not buying clothes for themselves
    5. Limiting use of their car and choosing public transport (cutting back on fuel)23% of parents said they feel their personal finances will only get worse in the future. Only 12% of parents believe raising children will get easier in the future as they adjust their personal circumstances via a new job or frugal savings.  

But that doesn’t stop the children asking parents for the things they desire.  

Brits rely on an inheritance to afford a funeral – but few know it can take up to a year

BUYING PHONES FOR CHILDREN 

If you have a child, say 8 years and above, they likely nag you about having a tablet or mobile phone. 

Children nowadays are technology obsessed (probably sped up by the lockdown) and this extends to wanting their own phone.  

But long gone are the days where your unused old iPhone will please them, and that’s what Sywcha’s research also shows.  

The research showed that 71% of UK parents say that they bought a brand-new phone for their child in the last two years, with children being on average 10 years old when they get their first phone.  

Nearly 1 in 3 UK parents say that paying their child’s phone contract has become difficult due to the rising living costs. 

A third of parents in the UK currently pay over £50 a month for their children’s phone contracts according to Swycha’s research. 15% of parents were found to be paying over £100 a month on their children’s combined phone contracts (wow).  

These costs are staggering and Swycha’s research suggests that parents feel a pressure to get the phones their kids ask for… 

FEELING THE PRESSURE TO PLEASE KIDS 

In the survey, 41% of parents say they bought a new phone for their child’s most recent Birthday or Christmas. 

Half of parents buy the exact model of phone their children want because they say the financial cost outweighs the emotion of disappointing them. 46% of children ask for a particular model of phone (such as an iPhone 13) to fit in with their friends or keep up with the latest trends.  

Only 14% of children in the UK now have a pay-as-you-go phone sim phone according to the survey, with 39% of parents saying they have paid over £200 upfront for their child’s phone.  

To find out more about the research and about Swycha, who provide environmentally friendly and affordable refurbished iPhones please visit Swycha’s website.

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. 

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