British children think an average home costs £1,000, a loaf of bread will set you back £5 – and that their parents earn £1 million a year.
A poll of 1,000 children aged 6-10 asked them to state the cost of some common everyday items, with some amusing results.
It found a fifth of youngsters think you could get yourself a brand new car for as little as £1,000, and one in 10 reckon you could buy a new set of wheels for less than £100.
Another 20 per cent estimate a brand-new iPhone could be purchased for the modest price of £100, while a tenth believe it would set you back as much as £2,000.
Nearly one in five children reckon a single banana would see you £3 or more out of pocket, and one in 10 think you can buy a house for the bargain price of £1,000.
Almost a quarter also think a loaf of bread will see you shell out more than a fiver.
The study was commissioned by Drewberry as they launched an online money class (https://www.drewberryinsurance.co.uk/money-lesson) to help struggling parents educate children on the power of understanding finances so they can become a pocket money expert.
The UK-based financial advisers also filmed children sharing their thoughts on how much particular items cost, with one youngster saying £40 was a lot of money, while another estimated a car could be bought for just £88.
It also emerged one in seven of those polled think a premiership footballer gets paid £5,000 a week, when top players are realistically getting more than £100,000.
But it’s evident a number of children are pretty wise to the wealth of this industry, as 71 per cent believe a professional footballer gets paid more than a fireman.
Tom Conner, director at Drewberry said: “It’s great fun to see children’s perceptions of money and how much they vary.
“It’s tough growing up and not quite knowing how much things cost, and not getting much opportunity to really get to grips with finances.
“But there are some simple and fun ways to help little ones understand, such as going through the receipt on a shopping list with them or even playing games at home which revolve around spending money.”
The study also found nearly one in 10 children think it only takes £1,000 to be considered ‘rich’, while 57 per cent said £100,000 would put you into this category.
As many as 58 per cent would like to earn a hefty £1 million a year when they’re grown up.
The research, conducted via OnePoll, also revealed what young Brits would spend £1 million on, including as many sweets as they are allowed, a Nintendo Switch and a trip to Disneyland.
Nearly two-fifths would very considerately spend £1 million on presents for their parents, while others want an iPhone or pet puppy.
They may be waiting a while though as the average six-10 year-old will get just over £15 a month in pocket money.
And only 15 per cent will have their mum or dad take care of it until they want to spend it – leaving a lot of the financial responsibility to themselves.
But 86 per cent of children agreed it’s important to learn about money so you can understand how to save it, how to spend it and have a better idea of how much things cost.
More than a third also said it’s good to learn about finances so you don’t spend more money than you have and see yourself go into debt – while 47 per cent said it can help you earn lots of cash when you’re older.
Already, 67 per cent have been taught how to add up money and 56 per cent understand how to save money.
A further 48 per cent are clear on how to check if you have been given the right change when paying for something, with 58 per cent knowing how much each coin or note is worth.
But a tenth of youngsters believe insurance is something to do with the internet or a driving license, while seven per cent think tax refers to money you pay on things you don’t need.
Tom Conner, director at Drewberry added: “Although the survey results and video provide some lighthearted fun, it does go to show that 6-10 year old’s are still developing their understanding of money.
“We hope our interactive money lesson on how to become a Pocket Money Expert will be a fun way for parents to further their children’s money education and provide a source of entertainment before they can go back to school.”
Top 20 things children would spend £1million on:
1. Go to Disneyland
2. Buy presents for their parents
3. Buy an iPhone
4. Buy lots of toys
5. Buy as many sweets as they are allowed
6. Buy lots of chocolate
7. Buy a life size house
8. Buy a TV
9. Take their friends out for a day trip to a theme park
10. Buy an iPad
11. Buy a pet dog
12. Have a big party
13. Buy a Nintendo Switch
14. Buy a laptop
15. Buy lots of ice-cream
16. Buy lots of Lego
17. Buy lots of clothes
18. Decorate their bedroom
19. Buy an Xbox
20. Buy a bike