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.