TIME Personal Finance

The Richie Rich Effect: Kids Cash In On Improving Economy

A new study shows children are receiving larger allowances from their parents.
Jamie Grill—Getty Images A new study shows children are receiving larger allowances from their parents.

In this economy? Well, yeah

Your kids are demanding a raise, and you’re probably going to give it to them.

So says a new study that shows children are receiving increasingly large allowances from their parents, partly as a result of the improving economy, it seems.

While the percentage of parents giving an allowance of up to $10 a week fell from 77.3 percent in 2011 to 68.4 percent in 2013, the percentage of parents giving between $11-$20 or between $21-$30 jumped sharply, according to an annual Parents, Kids & Money survey, Reuters reports.

And some kids seem to be rolling in dough. Four percent of parents gave between $41 and $50 a week in 2013, nearly quadruple the number from the 2011 survey—and more than one percent of parents are handing out between $91 and $100 a week.

So are your kids getting above or below average allowances? A 2012 survey by the American Institute of CPA’s shows eldest children received an average of $16.25 each week.

The allowance increase could partially be attributable to families feeling more stable in the post-recession years, or it could be that kids are paying for more things they need, like clothing, for example, Reuters reports.

Others suggest there might be a social factor at play. Humorist Dan Zevin told Reuters his son had been influenced by what his friends had been given. “The only thing that matters to your kid is what Richie Rich’s parents are giving down the street,” he said.

Just hope the kids don’t ask for a bonus.


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