According to a national Harris Interactive survey conducted for the American Institute of CPAs, 61% of parents in the U.S. pay their kids an allowance. The average amount kids make is $65 a month. That comes to a whopping $780 annually.
“These findings make clear that it can pay to be a kid,” Jordan Amin, CPA, chair of the AICPA’s National CPA Financial Literacy Commission said in a press release.
The majority of parents who give allowances (89%) don’t just blindly give money to their charges. They expect their kids to earn the money by completing various chores. The survey also found that 48% of parents with kids in school pay for good grades.
Amin advises parents of the importance of “passing along financial sense with those dollars and cents.”
“Earning, budgeting and saving are all important lessons that can be tied to allowances – lessons that can help put children on solid financial footing,” Amin said. “As parents, we feel a strong commitment to our children and ensuring they have all that they need to succeed. One of the best gifts we can give them is a solid education on managing money.”
Visit the AICPA’s website to learn tips about how you can talk to your children about money.