Trump has vowed financial relief, but Americans say they’re struggling
President Donald Trump has pledged to end inflation and cut food costs soon after he takes office. This is what Americans are thinking in 100 days.
- Despite inflation, most parents do not increase their child benefits.
- The average weekly allowance for children aged 5-17 is $37.19, but the median is $20.
- Digital payment methods such as Venmo and direct deposits are increasingly being used for allowances.
While they are in the grocery store or gas pump, there may be inflation in the minds of most Americans, but not when they are emitting child benefits.
According to a new Wells Fargo survey, 29% of parents increased their child allowances last year to keep up with inflation, while 65% reduced the amount they gave to their children by 6%.
“The harsh reality, whether or not the allowance has changed, is that there is no doubt an increase in what children are spending money,” said Rouen Miller, student bank director at Wells Fargo. “Starbucks, which used to cost $3, costs $5.”
The survey found that 71% of American parents give their children benefits, but the amount and way they transfer funds depends primarily on the child’s age.
What should you know about this:
What is the average allowance based on age?
According to the survey, the average weekly allowance for children aged 5 to 17 years is $37.19 in 2025. However, that number is influenced by some parents who give high allowances. The median weekly allowance is $20.
Generally, allowances increase as the age of a child. For ages 5-8, the average is $31.50 with a median of $15. People ages 9 to 11 earn a little more and receive a median average of $34.32 and $20 per week.
For these 12-14, the average is $36.05 with a median of $20. The oldest children, or children aged 15 to 17, receive the most. A median average of $44.88 and $25 per week.
When do parents give their children benefits?
Of parents who give their children benefits, one-third can give them regularly, and a quarter can give their children aged 5-8 years.
Miller said allowances are a good way for parents to teach their children about positive money habits, such as budgeting and saving for large-scale purchases. She said starting to be young isn’t a bad idea.
“Parents know that they’re talking to their kids about money early on, and they think it’s a good idea,” Miller said. “Almost everyone thinks it’s important to have kids make those little choices early, as they have guardrails for them.”
The most common ages at which a child receives allowances are between 9 and 11 years old.
As children become teenagers, allowances are also common. Over 70% of parents said they would give regular or occasional child benefits between the ages of 12 and 17.
Allowances and Tooth Fairy are (slightly) digital
When it comes to allowances, cash remains king, but digital payments are becoming more and more common.
In 73%, many parents provide cash for allowances, and half give it exclusively, the survey found.
However, nearly a quarter of parents use peer-to-peer payment apps like Venmo to send allowances, with 20% using direct deposits in their children’s bank accounts. Approximately 14% use prepaid debit cards for transactions.
Older children are less likely to earn cash than younger children, but even 18% of children aged 5-8 receive benefits in direct deposits.
Miller said she saw her parents open debit cards for her younger child. It is a sign of the times.
“I’m not using cash at all,” Miller said. “If someone gives my child cash, they immediately turn around and give it to me and say, ‘Can you send this to my bank account electronically?” ”
How about the tooth fairy?
The pivot to digital payments is even affecting the tooth fairy.
She still leaves cash most often, but in 2025, she will use 11% of her peer-to-peer payment methods. The survey found that around 7% of the tooth fairy payments are offered in the form of gift cards.
“Maybe when you forget to get cash on your tooth fairy pillow, digital options are a really good way to make your child wake up with something,” Miller said.
Contact Rachel Barber at rbarber@usatoday.com and follow her at x @rachelbarber_
