Most parents make their kids work for their allowance, by doing an average of about six hours of chores per week, according to the AICPA survey.
Children ages 4 to 14 were paid an average of $454 in allowance money throughout 2017, in addition to cash gifts for birthdays and holidays, according to an upcoming poll from allowance tracker RoosterMoney. The app surveyed 10,000 of its users. The average kid takes home about $8.74 a week.
Offering an allowance is an opportunity to teach children how to spend and save. People form many of their financial habits by seven years old, a 2013 University of Cambridge study found.
Starting young, the average 4 year old makes about $3.76 per week. By the time they reach 14, their allowance will increase to $12.26 a week. Again, this is on average.
Do you or would you pay more or less than the average to your kids for doing their chores?
How much did you make in allowance money when you were a kid?
Unlike when some of us were much younger, those payments are not just cash anymore! Apps like RoosterMoney, FamZoo and Threejars offer ways to digitize the allowance and induct children into the economy, which itself is becoming increasingly virtual.
William Carmichael, CEO of RoosterMoney, suggests some simple ways you can discuss money with your kids. One is to reward saving. In its user survey, they found that the average kid saves 43% of his allowance, so that’s good news! Another thing is to teach your kids the pain of debt. The FamZoo app even allows children to receive loans from their parents, with a real-world cost.