Children enjoy allowance hikes as economy improves


Children are enjoying hikes in their allowances as the fortunes of their parents brighten.

From 2011 to 2013, the percentage of parents giving their children between $11 to $30 a week climbed significantly, thanks in part to an economic rebound, according to data analyzed by T. Rowe Price for Reuters. At the same time, more budget-conscious mothers and fathers who only shelled out up to $10 a week dropped sharply.

Some children are seeing even bigger boosts to their spending money. About 4 percent of parents in 2013 — nearly four times the number in 2011 — bestowed between $41 and $50 on their offspring. An additional 1 percent handed their children an eyebrow-raising $91 to $100 a week.

A T. Rowe Price financial planner told Reuters that families may be passing along higher incomes to their children. But another explanation could be a shift to give children more control over their finances in order to teach them money smarts.

Whatever the reason, the report is in line with other studies that have scrutinized the pocket money of American adolescents.

An American Institute of CPAs study in 2012 discovered that the oldest children in a family typically see a weekly allowance of $16.25. That adds up to $65 a month.

 

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