The skill of saving money should be taught from the early stages of growth.
Though majority of American parents are appreciating their children's good work and paying them a weekly allowance, they are not properly guiding their children about how to manage and save the money, a new survey says.
According to the findings of a national phone survey, most of the children (61 percent) in the country get almost $ 65 a month ($ 780 a year) as an allowance from their parents, but majority of them are least bothered about saving it and spend on toys or hanging out with friends.
A significant number of parents reported starting the allowance from age eight, but only a minority (one percent) of parents reported their children saving the money that they give them.
Some parents were found keener about teaching their children the importance of earning money through hard work -about 89 percent of parents wanted their children to work at least one hour a week and earn it.
However, Parents were also found not giving top priority to teach their children the value of money. Importance of good manners (95 percent), benefit of good eating habits (87 percent), importance of good grades (87 percent), risks about drugs and alcohol (84 percent) and dangers associated with smoking (82 percent) were found more important to the parents than teaching their children about managing money wisely (81 percent).
Parents also reported willing to pay for some other optional activities like sport or hobby expenses, mobile phone charges, movie rentals and digital downloads of their children. About 47 percent of parents were also found willing to financially support their child until they turn 22 or older.
After finding the results, the investigators urge the parents to teach their children money management for making them successful in life.
"These findings make clear that it can pay to be a kid. Parents need to make sure they're also passing along financial sense with those dollars and cents. Earning, budgeting and saving are all important lessons that can be tied to allowances - lessons that can help put children on solid financial footing," said Jordan Amin, chair of the AICPA's National CPA Financial Literacy Commission, in a news release.
"As parents, we feel a strong commitment to our children and ensuring they have all that they need to succeed. One of the best gifts we can give them is a solid education on managing money."
