Most children get an allowance but don't save it, study finds

Published: Friday, Aug. 24 2012 11:52 a.m. MDT

The average allowance for kids in the U.S. is $15 a week, according to a recent survey by the American Institute of CPAs via CNNMoney.

Shutterstock

Enlarge photo»

The average allowance for kids in the U.S. is $15 a week, according to a recent survey by the American Institute of CPAs via CNNMoney.

Kids' allowances grow as they get older, with the average across all ages being $780 a year, according to the survey. That's enough money to buy an iPad and iPod Touch. With a few years of saving, that money could add up to enough for a car.

But most children are spending their money quickly instead of saving it, according to the survey. Just 1 percent of the parents said their children save any of their allowance, although 61 percent of parents give their kids an allowance.

Even though 89 percent of parents said their kids have to work at least one hour a week, they typically cover expenses for their children, in addition to paying an allowance. Almost 90 percent of parents who pay their kids an allowance pick up other costs for their kids, such as cellphone bills, music downloads and hobby expenses.

Part of the reason kids don't save is because their parents don't talk to them about money, according to the survey. While 81 percent of parents said they've talked to their kids about managing money, more have discussed other issues. A whopping 95 percent have discussed good manners, 87 percent have talked to them about good eating habits and getting good grades and 84 percent talked to their kids about the dangers of drugs and alcohol.

EMAIL: bbullock@desnews.com

TWITTER: @BullockBlaze

Get The Deseret News Everywhere

Subscribe

Mobile

RSS