The average weekly allowance for American kids is more than $15 a week, according to the latest survey by the American Institute of Public Accountants.
Allowances are fairly common, with more than two-thirds of parents saying that they give one to their kids. The $814 per year doled out by parents isn’t free money, however. More than 90 percent of kids have to do some chores in order to get paid.
Children do an average of six hours of chores to earn their cash, according to the survey, for an effective average hourly pay rate of $4.43 per hour. That’s just over 60 percent of the federal minimum wage, but it’s up 16 percent since 2012.
Still, some kids get a lot more than the average. More than 20 percent of parents said that they provide an allowance of over $100 per month.
More than 90 percent of parents surveyed said that the allowance served a purpose, and more than 80 percent said that it teaches children the value of money and financial responsibility.
The AICPA’s National Financial Literacy Commission also advocates that parents use allowance as a teaching tool. “Instilling basic financial literacy in children when they are young will better prepare them for the financial decisions they make as young adults and serve them throughout their lives,” commission chair Gregory Anton said in a statement.
Anton recommends that parents offer a match on kids’ savings worth up to 10 percent of their allowance.