Two-thirds of parents give their child an allowance, and the average weekly amount is $30, according to a survey published this week by the American Institute of Certified Public Accountants. That’s up from $17 in 2016, the group said.
Many children aren’t simply getting a handout, though, The New York Times reports. Four in five parents who give an allowance said they expected their offspring to work for the money—about five hours a week of household chores, on average.
Children whose allowance is based on their completion of chores earn an average of about $6 an hour, an increase of 38% from three years ago. Over the same period, the average hourly pay rate for all Americans rose 10.5%, the institute said, using federal labor statistics. (The group said it could not explain why the amount had increased because the survey didn’t ask parents about that.)
Three-quarters of adults surveyed said the main reason for giving an allowance was to teach the value of money and financial responsibility. But just 3% said their child mainly put the money aside for savings, a proportion the institute deemed “alarmingly” low. Most said their children spent the money on things like outings with friends, digital devices and entertainment, or toys. Read the full story.
