According to a survey done by the American Institute of CPA’s last summer, the average American child is making an average of $15 a week in allowance.
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I don’t know about you, but I hope my kids don’t read this survey for a while! Good thing they’re only 6 and 7 years old, and I highly doubt they’ll be browsing through the American Institute of CPA’s website anytime soon!
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Obviously children are typically receiving a larger allowance the older they get, but the average across all ages is $780 a year, according to the survey.
The survey found that 61 percent of parents pay an allowance to their kids, with the majority (54 percent) beginning by the time their child was 8.
Nearly half of parents with kids in school (48 percent) also pay their kids for good grades. The average rate for an A is $16.60.
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The vast majority of parents do require their children to EARN their allowance.
89% expect their children to work at least one hour a week and, on average, children put in 6.2 hours per week on chores.
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Money Earned is Not Money Saved However!
The survey also found that money is not a top topic for conversation.
According to the survey, parents are more likely to have talked with their kids about the importance of good manners, 95 percent, the benefit of good eating habits, 87 percent, the importance of good grades, 87 percent, the dangers of drugs and alcohol, 84 percent, and the risks of smoking, 82 percent, than about managing money wisely, 81 percent.
Children have broad flexibility with the money they receive. They most often use their allowances to buy toys or to hang out with friends, according to the survey, as parents handle other purchases.
Nearly half of parents, or 47 percent, said they expect to financially support their child until age 22 or older.
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Maybe how much our kids make in allowance isn’t as important as how much they spend!
Maybe this applies to our allowance (aka Salary) too?!?!
–Written on September 4, 2013