The vast majority of parents of children aged 6-16 (91%) plan to teach their children about financial responsibility in 2010, reports American Express. The most common lessons they will focus on include:
• Understanding debt and its impact on spending and saving (30%);
• The value of a dollar through a rewards system, such as an allowance (25%); and
• How money is earned and used in everyday life (21%).
Nearly two thirds of parents (62%) give their children allowances, averaging $12 per week. Of those, 47% of parents expect that the child’s allowance will be spent rather than saved. That breaks down to:
• 23% who do not put any restrictions on how their children are allowed to spend their allowances;
• 13% who give allowances for non-essentials, such as movie tickets, toys, or games; and
• 10% who expect their children to spend the money on essentials such as lunch.
Only 18% give their children an allowance specifically so it can be deposited into their savings account or saved in their piggy banks. [Youth, Finance]
Source: “Spending & Saving Tracker,” American Express, Lisa Gonzalez, 200 Vesey St., New York, NY 10285; 212-640-2851; lisa.a.gonzalez@aexp.com; www.aexp.com.
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