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!
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