Study finds parents pay their children an average of $30/week for allowance

(U.S.) – As parents, most of us have been there. Our kids hold out their hands and ask for their allowance.

A recent study by professional CPAs surveyed parents and found that the average we shell out every week to our kids is $30. The study was commissioned by the American Institute of CPAs.

The study found that we would be capable of saving approximately $1,500 annually if that money was directed to a savings account rather than to our kids for spending cash. Researchers went on to offer additional perspective in the study indicating that money adds up and could allow for the purchase of a used car, laptops, or other productive goods in just a few years.

The study of just over 1,000 adults found, however, that just 3 percent of parents reported their kids typically save their allowance.

Among the other findings:

• Three-quarters of Americans (75 percent) say the most important purpose of providing an allowance to children is to teach the child about the value of money and financial responsibility. However, parents surveyed say most of their kids’ allowance is spent on outings with friends (45 percent), digital devices or downloads (37 percent), or toys (33 percent).
• The average monthly ‘salary’ among allowance earners is $120, as reported by their parents. While the average hours of chores a week required by parents to earn an allowance are on par with 2016 (5.1 hours in 2019 vs. 5.3 hours in 2016), the hourly pay rate for children who have to work for their allowance has seen a dramatic 38 percent increase, rising from an average of $4.43 in 2016 to $6.11 in 2019. Across the same time period, the average hourly pay rate for all Americans increased by 10.5 percent ($25.43 in 2016 vs. $28.11 in 2019) according to the Bureau of Labor Statistics.
• More than 4 in 5 (86 percent) Americans believe kids should receive an allowance, most commonly saying every cent should be earned and linked to chores (52 percent). A quarter (27 percent) believes it should be partially earned and partially gifted.
• Four out of five (80 percent) parents who provide an allowance would be quick to point out that their kids are not getting a free ride, as they expect their children to work (e.g., completing chores) at least one hour a week. On average, children are spending about 5.1 hours a week doing chores to earn their allowance.