Allowance day. It's a ritual that kids all over the country eagerly anticipate every week.
But beyond giving your child a few bucks, the payment can also serve as a valuable lesson in financial responsibility, the American Institute of CPAs found.
Almost 70 percent of parents are providing an allowance these days. To earn the money, their kids are required to work an average of six hours a week, according to the recent survey of 1,000 adults aged 18 and over. They're getting an hourly wage of about $4.43, up roughly 16 percent from 2012. Total inflation in the U.S. was roughly 3.7 percent during the same period.
Moreover, 90 percent of the adults who said they got an allowance when they were young said they had to complete some kind of chore to earn the stipend.
This strategy of work for cash was cited by both those surveyed and financial experts as a way to teach young people about saving, spending and budgeting.