Weekly allowances rising way faster than American wages
It pays to be a kid today.
Pretty well, too. The average allowance for today’s youth is $30 per week, according to a new survey conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA). That’s up from $17 in 2016, according to the research.
Two-thirds of parents in the U.S. are paying their children for housework via weekly allowances, while the going average rate is $6.11 an hour to do chores, according to the survey.
While the average hours of chores per week held mostly steady compared to 2016 (5.1 hours in 2019 vs. 5.3 hours in 2016), the hourly pay rate for children who work for their allowance spiked 38%, rising from an average of $4.43 in 2016 to $6.11 in 2019. During that time, the average hourly pay rate for all Americans increased by 10.5% ($25.43 in 2016 vs. $28.11 in 2019), according to the Bureau of Labor Statistics.
Burning a hole in their pocket
At $30 per week these kids have the potential to bring in about $1,500 for the year.
However, only 3% of parents reported that their kids are saving their earnings.
According to the survey, kids living in the FOMO (fear of missing out) world prefer to spend their money on outings with friends (45%), digital devices or downloads (37%), or toys (33%) over saving it.