Parents can have a tough time figuring out how much allowance to give their kids. Is the cash just for life's little pleasures and extras, or is it payment for properly doing household chores?
Business Teacher Hillary Wimmer favors the payment for chores model with bonuses for doing more than just the basics to teach kids the value of working for money.
She said, "You've watered the plants , you've taken the dog out, whatever those basic chores are, and then we have a bonus board and that's really where you incentivize your children to begin working."
When the American Institute of Certified Public Accountants looked into how much kids get for allowance these days it found the average 14 year old gets $30 a week. That works out to more than $1,500 a year. The accountants suvery revealed 80% of children getting allowance were expected to do at least an hour's worth of chores per week.
Financial literacy Expert Rachel Namoff looks at allowance as more than just paying children to work. She said, "allowance teaches children the value of money , it teaches them about savings, it teaches them about what's important in life."
Her own children get allowance with a twist. They divide their many into now, later or give envelopes to help incentivize saving or donating money.
The accountant's study reveals:
* 3% kids save most of their allowance
* 45% spend on outings with friends
* 37% use allowance for digital devices or downloads
* 33% spend it on toys
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