Children Receive $65 a Month Allowance on Average

Results from a recent national survey on children’s allowance conducted by Harris Interactive for the American Institute of CPAs, was the focus of a recent Yahoo! article. The study, which showed that children are getting about $65 a month from their parents, begs the question, “Is that too much?” Clare Levison, CPA, a member of the AICPA’s National Financial Literacy Commission, said that “it depends on the age of the child and the financial circumstances of the family.” More importantly, Levison stressed, is that parents use the allowance to have a conversation with their children about their financial habits and the importance of savings. “Parents should have an conversation with their children about the importance of saving," Levison, a mother of two, suggests. "I would also basically set up the expectation that some of those things that children want are going to have to be purchased with the money kids have set aside."

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