Think back to when you were younger, did you get a weekly allowance? Typically, kids would do some chores around the house and get a whopping $5-10 at the end of the week for following directions. If they were really lucky, they'd get a cool $20 so they could go see a movie with their friends.
Apparently today's kids are really, really lucky because that cool $20 is lower than the average weekly allowance. A recent study has found that the national average allowance for kids is $30 a week! What kind of chores are these kids doing around the house?!
In an interview with CPA, Michael Eisenberg and NPR host, Mary Louise Kelly Michael said he was shocked by how high that number is. In fact, he said that his kids are older and "certainly never got that much" for their allowance. One silver lining to this shocking number is that Michael also found in his research that "more than half" of the parents who give their kids an allowance require them to do chores around the house to earn the money - it's not just handed to them.
Aside from the crazy-high allowance these kids are getting, Michael was shocked by something else in his study - only 3% of these kids are putting some of their money aside for savings. The CPA said that it's clear parents are not teaching their children "financial literacy" with their allowances because by the time they're in high school and/or college, they have little to no savings and still don't understand how to be financially responsible.
To combat this, Michael suggests to go old-school and take your child to the bank to help them set up their first savings account when they're young. This will get them in the habit of saving from day one, and then when they get their first part-time job in high school, teach them to put a certain percentage of their take-home pay right into that savings account. Eventually, that will add up and they may even be able to help pay a good chunk of their college tuition, or at the very least leave college with a little cash stashed away.
In the end, this study was definitely eye-opening in a number of ways, but if you take anything away from it, let it be teaching your kids financial responsibility rather than shelling out $120+ a month for chores around the house you've been doing for free for years.