NEW YORK (CNNMoney) — Kids are raking in an average of $15 a week in allowance, according to a recent survey. But money earned isn’t money saved, and a majority of parents say their kids are spending their allowance just as quickly as they receive it.
While children generally receive a larger allowance the older they get, the average across all ages is $780 a year, according to a survey by the American Institute of CPAs. That’s enough to buy an iPad and an iPod Touch, or an XBox 360 with 10 video games. In just four years, a diligent saver could buy their first clunker to drive their friends around.
But, as the survey found, allowance money is rarely saved. Parents say most of their kids’ allowance is quickly spent on outings with friends or toys.
The AICPA’s survey found that 61% of parents pay an allowance, and more than half of them starting making these payments to their kids by the time they’re eight years old. Yet only 1% of parents say their child ever saves any of that money.
Part of the problem: More parents teach their kids about good manners, eating habits, and grades than money management. Eighty-one percent of parents say they’ve discussed managing money with their kids, compared to 95% who discuss good manners, 87% who discuss good eating habits and grades, and 84% who discuss the dangers of drugs and alcohol, the survey found.
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