LONDON, March 29, 2017 /PRNewswire/ --
To celebrate Global Money Week, a new survey by RoosterMoney, the allowance and chore tracker app, has revealed how families across America are using allowances with their kids - How much the children get, what they do to earn it,and what they spend it on?
How much allowance do they get?
The survey found that the average allowance received by children aged 4-14 was $5.24.
The averages ranged from $2.58 for 4 year olds to $8.32 for 14 year olds, with the biggest jump occurring between 12 and 13 as kids enter their teens.
When do they get it?
68% of parents in the US give their children an allowanceand 69% of those opt to hand it out on a regular weekly or monthly basis, showing routines are the preferred method over ad-hoc rewards. The most popular day to award an allowance is Saturday (48%).
How do they earn it?
Household chores are the most common way to earn your allowance, and these were the most lucrative ones:
- Tidying the bedroom - $3.86
- Doing the dishes - $2.56
- Vacuuming - $2.42
- Emptying the trash - $1.84
- Laundry - $1.63
The top earning chores overall often seemed to be earned outside the house:
- Gardening - $10.66
- Babysitting - $9.37
- Clearing leaves - $5.47
- Washing the Car - $5.20
- Walking the dog - $3.89
Incentivizing kids to do their homework is still quite common, with kids earning on average $3.45 for completing homework, and more than doubling that to $7.83 for bringing home good grades. Proving working hard at school really can pay off!
Other ways the kids managed to earn some extra cash were:
- A visit from the tooth fairy -$5.66
- Finding it! - $4.38
- Being good - $2.89
Interestingly, children earned the most money from selling things (like old toys and books), making an average of $20.99 per item sold - revealing a keen entrepreneurial streak in today's kids.
The biggest earner overall, unsurprisingly, was having a birthday, with the average given coming in a $40.24
Who gives it to them?
Naturally parents are the main contributors to their kids' wallets, but wider family members play a big role too. Grandparents pipped Aunts and Uncles to the post as the most generous family members, handing out an average of $23.17 per visit vs. $18.96.
What do they do with it?
Impressively, American kids were found to save 72% of their allowance with the girls saving on average 76% and the boys 70%.
These early signs of healthy savings habits amongst kids are encouraging for their future attitudes towards money, especially in light of research suggesting your adult money habits are set by the age of 7.
In terms of what they're saving for, Lego tops the list.
Most common things to save for (percentage of all things being saved for):
- Lego: 7.0% of all things being saved for
- Phone: 6.8%
- Bikes 6.6%
When it comes to what they actually spend it on, usually shorter term goals, Apps top the list.
Most common thing to spend on (percentage of all things spent on):
- Apps: 13.4%
- Toys: 11.8%
- Candy: 8.7%
The survey also found the most popular brands to be 1. Lego, 2. Xbox and 3. Minecraft. And the most popular games were 1. Minecraft, 2. Pokémon and 3. Clash Royale.
You can see all these stats and more illustrated in the full RoosterMoney Allowance Report here: https://www.roostermoney.com/pocket-money-resources/pocket-money-index-us
Will Carmichael, co-founder of RoosterMoney said: "We launched the Allowance Report to raise awareness for Global Money Week, it's a fun glimpse into the habits of young allowance earners, but also offers a serious insight into their attitudes towards money. In an increasingly cashless society, it's important now more than ever that we focus on getting children engaged and building good money habits early on. Research shows that kids are starting to form attitudes towards money by the age of seven. An allowance routine is a great way for parents to start that journey towards understanding the value of money at home."
*All data taken from 'The Allowance Report', sampling over 4,500 RoosterMoney users in the US, covering 14/01/16 to 31/12/16.
For case studies, interviews or images please contact James Kassam at RoosterMoney on firstname.lastname@example.org
NOTE TO EDITORS
RoosterMoney is an allowance and chore tracker app that helps parents teach their children the value of money in a digital age.
Simple, progressive and gameful, RoosterMoney brings to life all the sound traditional financial principles we were brought up with (or wish we were!) and makes managing money relevant and smart.
From as young as four years old, families can sign up to the free app which lets children keep track of their money, save towards goals and earn rewards while parents oversee what money goes in and out of their account - so parents remain the Bank of Mum and Dad without having to making actual deposits.
We believe the best lessons are learned by 'doing'. RoosterMoney encourages families to learn together so that parents can actively educate, motivate and empower their kids financially - giving everybody the reassurance that they're fully prepared for the future.