Are You Paying Your Kids Enough Allowance?
So This Thursday morning Eric and myself were talking about kids and how much they get for an allowance.
I'm not sure kids' allowance is keeping up with the rate of inflation, especially when even a candy bar cost over a buck now. Do you remember when you could buy a candy bar for a quarter?
A new study found that the average kid between four and 14 years old gets $8-a-week in allowance. But that's just the base salary. It is usually added to by getting paid extra for doing their chores, including:
1. Washing the car is worth an average of $4 extra.
2. Taking care of the yard, $4.
3. Cleaning their room, $2.
4. Laundry, $2.
5. Vacuuming, $1.50.
6. Taking out the garbage, $1.
7. Washing the dishes, $1.
The study also found the kids save about 37% of the money they make. Based on the $416 in just allowance at $8-a-week, that means they're saving about $154 a year.
If you are trying to teach your kids about saving money in this new digital age there is a really neat app you can use Rooster Money. In the study they did with 10,000 kids, they found out that entrepreneurial kids are earning more money for themselves by selling old clothes or toys. The research also found children are being encouraged to get into good financial habits early.