Wednesday, July 9th, 2014
Surveys show that raising a child to age 18 will likely cost parents around $250,000. But in addition to child care, food, health care and other essentials, it looks like $1,360 a year is paid in cash to children under 10, either in the form of weekly allowance, cash gifts, or out-and-out bribes for good behavior, according to a new survey. Coupon site vouchercloud.net surveyed 2,173 parents, and found that they paid out about $113 each month to each child under 10. (No word on what parents are shelling out for tweens and teens!) But it seems much of that is under duress—two thirds of those surveyed wished that they didn’t hand over so much cash to their kids.
An allowance presents a good opportunity to help teach children about fiscal responsibility, and allowing them to learn to save their money toward financial goals, before they get access to credit or that very first real paycheck. And apparently, more parents are trying to start that financial education early.
How financially savvy are you with your paycheck? Take our quiz to find out!
Image: Girl with bank by Gelpi JM/Shutterstock.com
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allowance, cash gifts, chores, financial education, financial goals, fiscal responsibility, parents, research, survey | Categories:
Education, New Research, Parenting News, Parents News Now, The Lighter Side
Thursday, March 29th, 2012
A new study conducted by the financial education and family planning group DoughMain.com has found that parents are divided on whether children should earn allowance as a reward for doing chores. According to the study, an overwhelming 89 percent of parents revealed they assign chores and 51 percent give an allowance — but only 21 percent of those parents that provide allowance said the primary reason for allowance was recognition for chores.
Twenty-six percent of the parents surveyed also said they give non-monetary rewards, like extra television or computer time, as a reward for the completion of chores.
The study’s authors argue that parents should connect chores and allowance, because it has the dual purpose of rewarding helpful behavior and teaching financial responsbility.
“We believe many parents are missing a critical opportunity by connecting the two into one powerful chores and allowance system. For many children, allowance is their only form of income, and we think when connected to chores, this type of responsibility is also instrumental in learning good financial management,” said Ken Damato, president and chief executive officer of DoughMain, in a statement.
Image: Piggy bank, via Shutterstock.
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