Money Trouble

Do you get pocket money? Do your parents give you less money now? Some kids aren’t getting their pocket money at all! This maybe is because of the ‘the credit crunch’.

What IS the credit crunch?

Banks around the world have a problem. They lend too much money to people. These people can’t pay back the money, so the banks don’t have enough. Some banks have to close.

But what happens to your money when your bank closes? In many countries, the government helped the banks.

• The UK Government will give £37billion to British banks.
• The U.S. Government will give $700 billion to American banks – that’s enough money to buy 2000 apple pies for every American person!

Why is this a problem for you?

Your parents may not spend as much money. They can’t borrow from the bank. For many people it will be difficult to buy expensive things like houses, holidays and cars – and some kids aren’t getting their pocket money!

Twelve year old Lamin from Birmingham in England, says: “I notice my mum doesn’t buy me many sweets now.”

Do you get pocket money?

Do you keep your money in a bank?

What do you spend your money on?