Report: Children's allowances reach new heights, parents pay more than ever

Author: Jake Lamb, ClickOrlando.com staff
Published On: Feb 03 2014 05:57:18 PM EST
Money-Bills

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.

To read more click here.