A question for all the parents who read Web Watch: how much money do you pay your kids in an allowance?
One would think this would be a simply question to answer, but it’s really a bit more complicated than one would think.
Are you the type of parent who pays an allowance to their children, no matter what? Or do you only pay an allowance as payment for specific jobs being done around the house?
Allowances, Dollars and Sense:
A Proven System for Teaching Your Kids About Money
That’s the question the AMERICAN INSTITUTE OF CPAs asked in a recent survey of over 1000 parents about paying out an allowance.
Some of the more interesting points that they found included:
- 61% of parents pay an allowance
- Of all the parents that pay an allowance, the majority of them started paying out an allowance by the time their child was 8-years-old.
- For parents that pay out money for getting A’s at school: on average, an “A” is worth $16.60
- 89% of parents expect their kid to spend at least 6.2 hours per week on household chores
So what was the final tally? HOW MUCH MONEY, on average, DO KIDS EARN WITH THEIR ALLOWANCE?
Let’s just say that there’s a reason you see kids today walking around with the latest electronic gear. On average, kids today are “earning” about $65 a month.
And what are kids spending their money on?
- Buying toys
- hanging out with friends
For Web Watch, one of the more shocking items to come out of this survey is that today’s parents are fully expecting to still be financially supporting their kids at age 22.