Smash those piggy banks, kids. Millennial parents are most likely to pay their kids an allowance through a mobile payment service, according to a report from CreditCards.com.
While cash is still king — it remains the most common way children receive their allowances — parents are also finding other ways to compensate their children for household chores.
Of the 2,694 parents surveyed, 61% still give their kids cash, 10% pay via mobile payments, 10% use a direct bank transfer, 10% pay with a debit card (including a prepaid or gift card) and 9% pay up through other means.
Of millennials, 15%, are most likely to pay through mobile payment services like Venmo or Cash App.
”I like the idea of paying an allowance digitally because cards and apps are how children will be transacting once they grow up,” CreditCards.com Industry Analyst Ted Rossman said.
“RoosterMoney, Greenlight, Current and goHenry are good examples of services that have been designed to teach kids about money with appropriate training wheels.”
Still, only 40% of children under 18 in the U.S. even get an allowance at all, and it’s children in higher-income homes that are more likely to receive allowance — 51% of kids in households that earn $80,000 or more a year receive allowance, while 33% of kids in households that earn under $40,000 a year receive an allowance.
The median weekly amount kids are making through an allowance is $4 a week.
“Whether or not you chose to give your child an allowance is a personal decision, but you absolutely need to find ways to teach them about money,” Rossman added.