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Money Matters

A new survey from American Express reveals that 71% of parents with children between the ages 6 and 16 say their children understand we are in a recession and 91% of parents say they are committed to instilling lessons of financial responsibility upon their children in 2010. This candor about financial awareness has had a impact on children, of which 20% of the parents indicated that has indicated their children have suggested that “maybe we shouldn’t buy that due to the recession.” Other results of the survey indicate that 62% of parents give their children a weekly allowance, the average amount given is $12 and that 47% of parents give an allowance with the expectation that it will be spent rather than saved and 23% give an allowance for kids to spend however they please and put no restrictions on what it is for; 13% give an allowance for kids to spend on weekly non-essentials; i.e. movie tickets, toys, games, etc and 10% give an allowance for kids to spend on weekly essentials; i.e. gas, lunch money, etc. Thirty-two percent say the primary reason for giving an allowance is to reward their children for school grades or household chores and 18% give an allowance specifically to be deposited into their children’s savings account or piggy bank. For access to previous American Express Spending & Saving Tracker results, please visit www.americanexpress.com/aboutus.

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