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Most Americans see value in giving children an allowance, according to a new survey
A survey conducted by the American Institute of CPAs found a large majority of folks around the country believe that receiving an allowance is valuable for children to learn about hard work and financial responsibility. Of the 1,005 adults polled, 81 percent stated that they believe this practice gives kids a better sense of the value of money.
The poll found that 68 percent of adults stated that they give their children money on a regular basis. Among this group, 9 in 10 parents make doing chores an essential part of this practice. Oddly enough, just 57 percent of respondents reported receiving an allowance growing up.
When it comes to working for an allowance, the average child does about six hours of chores per week. When you crunch the numbers, the expected rate of pay for these kids is around $4.43 an hour. A poll conducted in 2012 found that the average compensation for chores was $3.82, suggesting a 16 percent raise in just four years for American kids. For parents trying to cover the costs of a weekly allowance, taking a few paid surveys online is an easy way to make some extra cash from home.
Gregory Anton, the chair of the AICPA's National CPA Financial Literacy Commission, weighed in on the findings:
"Providing children with a regular allowance gives parents a perfect opportunity to have a discussion about the basics of saving, spending and budgeting. Parents should talk to their children about financial responsibility and the value of money on a regular basis - this should not be a one-time conversation," said Anton in a press release. "Instilling basic financial literacy in children when they are young will better prepare them for the financial decisions they make as young adults and serve them throughout their lives."
Beyond a traditional allowance tied to weekly chores, there are plenty of steps parents can take to help children learn more about financial responsibility and managing money. Forbes reported that if young children aren't comfortable with waiting to get something they want - whether it be a toy or an enticing candy - it can be difficult to develop budgeting skills later in life.
The Institute of Consumer Financial Education found that working with your kids to learn about the value of hard work and money is important. Help them understand the different coins and bills, and be transparent about how much things like groceries, play items or other purchases cost. This can help them appreciate the value of an allowance and begin to understand why spending any disposable cash right away may not be a good idea.
Another tip would be to open a bank account with your child. Not only will monitoring their savings be a helpful experience, but even knowing the right terminology is useful. They may be too young to delve into complicated financial jargon, but discussing the idea of credit or interest can be useful, the ICFE stated. When coupled with a weekly or monthly allowance, your child can begin to understand financial responsibility through real, hands-on experience.
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