9/15/2013
Two in three parents give an allowance to their child, according to PlayScience Lab and digital finance manager Virtual Piggy. The average allowance for 6-to-15-year-olds is $50 a month. However, 80% of kids who receive an allowance must do chores or work to get their money.
Yet, that’s just a general overview. Finances differ significantly by age of child and gender of parent.
Today’s parents aren’t merely handing out money to their children without some sort of discussion about money management. In fact, 94% of parents think it is “very important” to teach their children principles of money management. Saving is the top subject, and the lessons typically begin at age six. Parents also focus more on charity and giving during the tween years and shift their focus to earning income and banking during the teen years. Moms are more likely than dads to regularly discuss money and finances (55% vs. 49%).
Parents ease the purse strings as their children age. Most 6-to-10-year-olds (69%) get less than $10 a week, whereas the same percentage of 16-to-21-year-olds (69%) receive more than $10 a week.
The majority of 6-to-10-year-olds (85%) must finish their chores to get their allowance, but this mandatory labor decreases to 77% among 11-to-21-year-olds. Although most of their money is earmarked for their own personal use, 51% of 6-to-10-year-olds, 70% of 11-to-15-year-olds, and 86% of 16-to-21-year-olds either occasionally or regularly purchase items for the household.
Indeed, children are vocal about many household purchases. Yet, this level of input varies depending on gender, according to C&R Research. Boys have more input than girls over food/snack items (40% vs. 32%), beverages (20% vs. 11%), and personal care products (13% vs. 9%).
One in four 6-to-10-year-olds (24%) have shopped online, compared to 57% of 11-to-15-year-olds and 68% of 16-to-21-year-olds. Three in four of those ages 6-21 (75%) have asked their parents to purchase something for them online, with those ages 11-15 being more likely than any other age group to make these requests. Kids are also more likely to ask mom than dad to buy them something online (76% vs. 71%).
In addition, parents of children ages 6-10 (98%) are more likely than parents of kids ages 11-15 (97%) and 16-21 (90%) to shop for their children online.
Most parents (58%) shop online a few times a month, with moms being less likely than dads to spend more than $1,000 a year on these online purchases (29% vs. 35%). Parents of children ages 11-15 (34%) are more likely than parents of children ages 6-10 (30%) and 16-21 (27%) to spend more than $1,000 a year shopping online.
SOURCES: C&R Research, Robbin Jaklin, SVP, 500 N. Mitchigan Ave., 12th Fl., Chicago, IL 60611, 312-832-8716, robbinj@crresearch.com, www.crresearch.com.
PlayScience Lab, Alison Bryant, President & Founder, 50 Broadway, 28th Fl., New York, NY 10004, alison@playsciencelab.com, www.playsciencelab.com.
Virtual Piggy, Jo Webber, CEO, 1221 Hermosa Ave., #210, Hermosa Beach, CA 90254, 310-853-1950, info@virtualpiggy.com, www.virtualpiggy.com
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