Studies have shown that most parents are poor financial role models for their children. So is it any surprise that of the money American kids get in allowance—a hefty $780 per year, on average—almost none is saved? In nearly 9 out of 10 families with kids getting allowances, the children do at least one hour of chores per week. On average, kids chip in with 6.2 hours of work around the house weekly, reports TIME Moneyland.
According to a recent survey by the American Institute of CPAs, the average child with an allowance pulls in $65 per month in exchange for handling his or her duties. For many kids, earning a weekly allowance serves as a great teaching tool if done the right way. Many experts recommend that parents institute some variation of the “spend, save, share” rule, in which it’s just not possible for kids to blow all of their money on toys and “hanging out.” With this plan, children are allowed to spend some portion of money gotten through allowances, birthdays, and whatnot, but they must also devote portions to savings and charity as well. Teaching kids the importance of saving and spending their money wisely is a lifelong tool that they’ll carry with them forever.
To read the full article, visit http://moneyland.time.com/2012/08/27/monkey-see-monkey-do-just-1-of-kids-save-any-allowance-money/.