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What's the Going Rate for Allowance?

The rush of independence you felt the first time you paid for an album or ice cream cone with your allowance was priceless. What does it cost to give your kids a little spending freedom today?

What's the right amount of allowance for your child?
What's the right amount of allowance for your child?

Do you give your kids allowance? How much? And what kinds of chores do you require them to do for it?

Across the country, 61 percent of families give their kids an allowance, and more than half start by the time their kids turn 8 years old, according to the latest study by the American Institute of CPAs (AICPA). 

The average allowance is between 50 cents and $1 for each year of a child’s age, according to AICPA.

But what’s the standard practice here in town? What factors are parents using to decide on the right amount of allowance? 

Some experts, including Neale S. Godfrey, suggest mocking up a weekly budget to hone in on the right amount. A first-grader would have a short list, but a high school senior needs gas, lunch, and a school supply budget. Otherwise, you get to set the amount based on what you’re comfortable allowing your child to spend on video games, bubble gum, or movies.

Need some more guidance? Sites like ThreeJars.com and FamZoo.com help kids and parents manage their allowance and spending. 

TELL US: What’s the going rate for a kid's allowance?

“What’s the Going Rate for Allowance?” is part of our ongoing Smart Spending series, in which  Patch uncovers the going rate for goods and services in town, so you’ll know how much to pay for what you need. Help us out by replying in the comments.

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