Spotlight on … allowances
Posted on July 13, 2015
Only 1 percent of children save any of their allowance for the proverbial “rainy day,” according to parents surveyed by the American Institute of CPAs, though most kids pocket enough allowance over the course of a year to buy an iPad® and three Kindles – and have money to spare.
61 percent of parents pay their children an allowance, averaging for the year $780 or $65 a month.
The vast majority of kids have to work for their allowance, and they average about 6.2 hours of chores per week.
Good grades can also mean big bucks for kids: The average going rate for an “A” is $16.60.
Many parents begin paying their children an allowance starting at age 8. Experts agree the earlier you teach kids about managing money the better. To encourage a younger child to save, try using three jars labeled “saving,” “spending” and “charity” and have your child deposit specific amounts into each. Offer to take your children to your local Chemical Bank office to open a Youth Savings account. For more information on this account, please visit https://chemicalbankmi.com/personal-banking/savings/youth-savings/ or call our Customer Care Center at (800) 867-9757. Download our FREE Chemical Banker Jr. App for iPhone, iPad and Android devices by visiting https://chemicalbankmi.com/about/for-kids/! Banker Jr. teaches young children ages 2 through 12 how to set savings goals, keep track of their accounts and other money concepts via a fun and interactive learning platform!
Source: Harris Interactive survey conducted on behalf of AICPA, October 2012.