Can’t afford to save for your own retirement, but you can give a $30.00 a week allowance to your children?
That’s it, I’m speechless.
NEW YORK (October 1, 2019) – A penny earned is not likely to be a penny saved for children today. A new AICPA survey found that kids are raking in an average of $30 a week in allowance, enough to save around $1,500 in a year. In just a few years, a diligent saver could buy their first used car. However, it’s concerning that only 3 percent of parents say their kids primarily save their allowance. These are among the findings of a new telephone survey of 1,002 U.S. adults conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA).
Three-quarters of Americans (75 percent) say the most important purpose of providing an allowance to children is to teach the child about the value of money and financial responsibility. However, the survey found, allowance money is rarely saved. Parents say most of their kids’ allowance is spent on outings with friends (45 percent), digital devices or downloads (37 percent), or toys (33 percent).