Should Teenagers Receive An Allowance?
Allowance is something that children love to receive, but parents and their kids are at odds at what they should do with it once they receive it.
According to a recent AICPA survey, children are averaging about $30 a week in an allowance, enough to have $1,500 if saved throughout the year. However, only 3% of parents can say that their children save the allowance money they receive.
“Three-quarters of Americans (75 percent) say the most important purpose of providing an allowance to children is to teach the child about the value of money and financial responsibility. However, the survey found, allowance money is rarely saved.”
In the United States, nearly $259 billion dollars was spent last year by teenagers on “non-essential items”. Poll results in one study showed that less than 30% of American teenagers had a savings account or set aside money, not seeing a need to do so.
The act of simply handing over money to children without teaching them the value, how it should be handled, how to start saving and how to eventually set up a bank account is just a missed opportunity.
As a parent, knowing where to start in how to start teaching your children about the value of money and financial responsibility may be difficult. That is why we started Wallit, a savings and reward app, to reward everyday savings.
Wallit makes it easy to manage your money and earn cash rewards for everyday saving and spending through our single app. We partner with leading banks and credit unions to offer moment-based rewards, such as completing savings goals or items on a to-do list.
One of the findings from the AICPA survey was that four out of five parents that give their children allowance say that they should be earned and linked to chores. Daily and weekly chores are necessary to learn responsibility and accountability as an integral part of the family.
With Wallit, parents and grandparents are rewarding kids for good grades, completing household tasks, achieving their savings goals, and give money or gift cards for birthdays, holidays, or any reason at all.
Using allowance as a teaching moment will help parents instill money management skills in their children at a young age that will prepare them for the important financial decisions they’ll have to make when they’re older.
The process of earning money, budgeting and setting savings goals help to understand the value of money. Starting at a young age is extremely beneficial for children and teens, and an extremely valuable life skill for everyone, because it involves understanding trade-offs and compromises as well as learning from mistakes.
With the use of Wallit’s easy and engaging digital experience, you now have a tool to better teach your children how to earn, budget, spend and save the responsible way and for them to learn healthy financial habits.
Sign up for Wallit today😄