Kids’ Allowances Going Up, But Few Are Saving

While kids may be too young to earn money at a job, it seems lots of them are raking in the dough, thanks to generous parents who give them big allowances.

A new report by the American Institute of CPAs finds:

  • The average kids’ allowance is $30 a week
  • The average kid does 5.1 hours of chores a week, which comes out to $6.11 an hour.
  • That number is a 38% increase from 2016, where kids earned an average of $4.43 an hour on chores.

When it comes to allowances:

  • 86% of Americans believe kids should get them.
  • 52% say the allowance should be linked to chores.
  • 27% think an allowance should be partially earned and partially gifted.
  • 80% of parents who give allowances expect their child to work for it doing things like chores at least an hour a week.

Now, what kids are doing with all that money is another story. The survey finds:

  • If they saved their allowance, the average kid would have $1,500 by the end of the year.
  • But, only 3% of parents say their kids primarily save their allowance.
  • Instead, 45% of kids spend their allowance on outings with friends, while 37% spend it on digital devices and downloads and 33% waste it on toys.

Source: Business Wire

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