Survey: More than 50% of parents opt for a task-oriented allowance for children

An allowance can be a great way to teach your kids how to manage money. However, there is debate about how much allowance you should give, when you should start giving allowances and whether the amount of allowance for children should be linked to chores. Not to mention, some parents don’t believe in allowances at all.

So we wanted to know more about when and why parents are going to give their children benefits. So we surveyed 1,000 Americans to find out what parents think about giving their children an allowance, how they determine the amount of the allowance, and whether they should be just like their love — unconditionally — or earned based on behavior.

Key findings:

65 percent of parents believe that children should be paid allowances by the time they are a teenager More than half of parents believe that allowances should be earned from chores About 1 in 4 parents believe in paying lump sums per month week Almost 1 in 7 people I don’t believe in allowances

Before delving further into these findings, a useful baseline would be how much allowance parents typically give based on age. According to a 2018 Rooster Money survey, the average compensation by age is as follows:

Age Average Child Allowance Per Week 4 $4.18 5 $4.79 6 $5.82 7 $7.42 8 $8.01 9 $8.71 10 $9.49 11 $10.43 12 $11 .91 13 $12.62 14 $13.87

Now, without further ado, our findings on parents’ drive to give child support.

Most parents start giving children an allowance at age 12

We asked parents from what age they gave their child a supplement. We also gave people the opportunity to indicate if they do not give their children any allowance at all.

The majority of parents we surveyed were on board with allowances. More than 3 in 4 (78 percent) of the parents surveyed indicate that they give or intend to give their children an allowance.

65 percent of parents believe that children should receive an allowance by the time they are teenagers. We also found that most parents answered that ages 7-9 and 10-12 were the most popular age ranges for children to receive benefits.

Despite studies showing that children can learn the value of money around the ages of 5 to 6, only 9 percent of parents said they believe in giving a stipend at 4 to 6 years of age.

More than half of parents believe child support should be earned through chores

Next, we wanted to know what the most important factors are that determine how much allowance parents give to their children.

We asked parents to select the three factors that most influenced the compensation they give their children.

The main factors that determine the child benefit are:

Chores: 52 percent Behavior: 43 percent Age: 38 percent Grades: 35 percent Parents salary: 19 percent Parental child support: 7 percent

Chores, behavior and age were the top three factors. Numbers came in fourth.

52 percent of parents selected chores as a determining factor in how much allowance they give their children. While there are arguments against linking allowances to chores, it seems like most parents are still on board with their kids making money by taking out the trash, doing the dishes, and other chores around the house.

The parent’s financial situation was one of the least important factors in determining child benefits

Interestingly, parents indicated that their financial situation was not a major factor in determining the benefits. In fact, less than 1 in 5 (19 percent) parents indicate that their salary is an important factor in the amount of allowance they give their children.

In addition, only 7 percent of parents said the allowance they received as a child was a major factor in how much they give their children today.

Less than 1 in 4 people believe in paying flat fees per week

Finally, we wanted to know whether parents felt that an allowance should be given weekly at a fixed amount or whether it should be earned based on whether their child meets certain expectations.

Our respondents tended to take the expectation-based approach. 61 percent of parents agreed that allowances should be paid if children meet certain criteria for chores, grades and behavior.

Just over a quarter of parents say they believe that children receive an unconditional fixed allowance every week.

Almost 1 in 7 people do not believe in child benefit

While most parents agree that benefits are important for teaching children financial literacy, a minority believe that children should not receive benefits at all.

13 percent, or almost 1 in 7 people, indicate that they do not think that children should receive an allowance.

Surcharge arguments often say that giving your children money that they can spend freely can create negative financial habits later in life.

However, when used as an educational resource, grants can be a great way to start talking about money with your kids early on.

Tips to Teach Kids Financial Responsibility [+ Free Printables]

In a 2019 survey by the Association of International Certified Professional Accountants (AICPA), 75 percent of Americans said teaching children about financial responsibility is the top reason for giving compensation.

However, only 3 percent of parents indicate that their children mainly save their allowances. Most parents said their children spent most of their allowance on outings with friends, digital devices and downloads, and toys.

So while grants have great potential as money management tools, there are educational steps you can take to ensure your children are using their grant responsibly.

You can make your kids financially successful by using their allowance as an opportunity to teach your kids about money with the tips below.

1. Set clear expectations

Before giving your child an allowance, discuss his expectations and responsibilities. If the allowance is tied to chores, good behavior, or grades, clearly let them know what you expect them to do each week to earn the money.

Also let your child know what you expect them to pay for. For example, you can cover food and clothes, but your child can be expected to pay for toys or video games. Determine all expectations regarding child benefit in advance, so that everyone is on the same page.

2. Help them make a budget

Sit down with your kids and help them create a monthly or weekly budget. Teaching kids about simple budgeting early on encourages them to keep track of their money and be more responsible, rather than spend their allowance as soon as they get it. If you have a teen, you can help them develop a more complex budgeting strategy to set goals and grow their money.

Talking about budget strategies early on can help them achieve success and develop ways to effectively balance life and budgeting as they get older.

For younger children, you can help them understand the difference between needs and wants when making their budget. Use the printable activity below for ages 5 to 10.

3. Encourage Them To Set Savings Aside

To emphasize the importance of putting money aside for savings, have your child set a savings goal for something they want. Then help them determine how much they need to set aside each week to reach that goal.

You can also help your child open a savings account. Whatever your method, it’s a great idea to get your kids involved and excited about saving.

Use the printable benefit table to help kids track their savings goals and celebrate their achievements

4. Use a “Spend, Save, Give” table

Some parents like to learn the “spend, save, give” approach. Encourage your kids to save a third of their allowance, give a third of it to a charity of their choice, and keep the rest as pocket money. Or you can work with them to get a different distribution based on their goals.

To help kids keep track of how much they spend, save, and donate each month, use this printable chart below.

Frequently asked questions about child allowances

Here you will find answers to some frequently asked questions about child benefits.

How much allowance should a child receive according to age?

A general rule of thumb is to pay one dollar per year per week. So, for example, an 8-year-old would receive $8 a week and a 10-year-old would receive $10 a week. However, this is ultimately up to you and your family.

When should I start giving a supplement to my child?

Some children ages 5 to 6 are ready to understand the concept of money management, but you will know best when your child is ready to receive an allowance.

Do I have to offer a repeat fee?

There is discussion about repeated surcharges. Many parents associate allowances with chores, while others think that chores are expected family responsibilities and should not be tied to money. A recurring allowance can be a good tool for teaching your kids how to save. You can also opt for a mixed approach, where children receive a basic allowance each week, but can earn more by helping around the house.

Should children receive an allowance?

An allowance is an excellent tool for teaching children about financial responsibility. But giving the stipend alone may not be enough to teach kids about money. It is best to use your child support as a way to open up conversations about money and saving so that your children can develop good money habits throughout their lives.

By measuring people’s views on child support, we get a sense of how families begin financial education with their children. But in the end, the benefit system that works best for your family will be the right one for you and your children.

Methodology

This survey was conducted on YouGov Direct for Mint.com. One thousand U.S. adults ages 18 and older were interviewed from March 11, 2022 at 7:48 PM to March 12, 2022 at 5:08 AM Eastern Time. The data was weighted by age, gender, education level, political affiliation, and ethnicity to be nationally representative of adults 18+ in the United States. The margin of error is about 3.1 percent for questions 1 and 3 and 3.7 percent for question 2.

Sources: Wiley Online Library | AICPA | cock money