Inflation may be on most Americans’ minds while they’re at the grocery store and gas pump, but not when they’re doling out their kid’s allowance.
While 29% of parents have increased their kids’ allowances over the last year to keep up with inflation, 65% have not, and 6% have decreased the amount they give their children, according to a new Wells Fargo survey.
“Whether or not the allowance has changed, the stark reality is that what kids are spending their money on has definitely increased,” said Louann Millar, head of student banking at Wells Fargo. “That Starbucks that used to cost $3 is now $5.”
The survey found that 71% of American parents give their children an allowance, but the amount and way they transfer funds largely depend on their children’s age.
Here’s what to know:
