1 percent of kids with allowance save money

1 percent of kids with allowance save money


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SALT LAKE CITY — How much money do you give your kids for an allowance? And what do they do with it? A new survey finds very few children are learning to save.

The survey found that 89 percent of parents say kids have to work at least one hour a week for their allowance. The average allowance ends up being about $65 a month, but only 1 percent of parents say their kids save their money.

Zions Bank vice president Rob Brough says many families do connect allowance to chores or extra work besides the given household duties.

"(Parents do it) so that that kids start to learn that there's value in the money they've earned, not just been given," Brough said.

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Of parents who pay their kids an allowance, 90 percent pay for other things for their kids like cellphone bills, music downloads and hobby expenses. But Brough says it doesn't do your children any favors to pay for everything for them.

Brough says the fact that so few kids save their allowance is a shame, because these are opportunities for parents to teach children and teens about money, about choices, delayed gratification, saving for something, and about budgeting.

"Kids will wear you down," he said. "They'll say, ‘I really want this, or I really want that.' It's an opportunity to say, ‘I understand you really want that. I'd love for you to have it, and here's how you can do it.' "

Brough says children should be taught to put a percentage toward charity or religious contributions, a percentage for saving and the rest for spending.

He believes the statistics reflect that many parents don't feel comfortable teaching kids about finances. Brough argues, however, that parents have to teach them they have choices to make with their money.

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UtahFamily
Mary Richards

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