Report: Children's allowances reach new heights, parents pay more than ever
As the economy continues to improve, so do the allowances kids receive from their parents.
There's been a big jump in the number of parents who are giving their children allowances bigger than $10 or $20 a week, according to numbers crunched for Reuters by Baltimore-based money managers T. Rowe Price, which are derived from its annual Parents, Kids & Money surveys.
Meanwhile, the percentage of parents giving sub-$10 weekly stipends fell from 77.3 percent in 2011 to 68.4 percent in 2013, a drop of almost 9 percentage points, according to the survey.
Four percent of parents gave between $41 and $50 a week in 2013, nearly quadruple the number from the 2011 survey—and more than one percent of parents are handing out between $91 and $100 a week, Time reports.
A 2012 survey by the American Institute of CPA’s shows eldest children received an average of $16.25 each week.
Different factors are thought to be contributors to the increase in child allowances including, an improved economy, child independence—kids purchasing more of their own needs—and financial stability.