Parents Talk to Children About Money, But Most Don’t Give Them Any
While 62% of parents talk to their children about money, only 37% have opened a bank account for them, and just 20% give them an allowance.
According to a survey of 1,501 American adults conducted for BMO Harris Bank in early February, parents under the age 30 tend to start handing out allowances sooner than other groups, beginning at an average age of four. As for how much of an allowance children receive, the survey revealed that 13% of parents who provide an allowance give one dollar a week, 32% give five dollars a week, and 38% give 10 dollars or more.
Most parents say they discuss money regularly with their children, and 56% of the respondents indicated that they had started to talk to their youngest children about financial literacy. The number of conversations families have about money varies according to the amount of income they earn. BMO Harris says that parents with higher incomes are the least likely to speak to children about money regularly (16%), but half (50%) still talk about it occasionally.
On the other hand, wealthy parents are the most likely to open a bank account for their children; 48% of those in $100,000 income group have opened an account for their youngest child, compared to an overall average of 37%.