Survey finds 71% of parents with children ages 5 – 17 give allowances; many face difficulties teaching them about money

Wells Fargo today released a new study illustrating how much allowance parents are providing their children and the difficulties parents have in teaching their children about money.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250702669386/en/

(Photo: Wells Fargo)

The survey found that 71% of parents with children ages 5 – 17 give an average weekly allowance of $37, yet 51% of parents struggle to talk about money in a way their kids will understand.

In addition, most parents (85%) believe that giving their kids an allowance helps them learn about spending, but many (65%) feel it is difficult to step back and let their kids make their own money mistakes.

Louann Millar, leader of youth and student banking at Wells Fargo, believes an allowance provides a weekly opportunity for parents to talk to their children about money. “An allowance is a vehicle that enables children to learn about money with guardrails. The weekly activity of giving the allowance presents an opportunity for parents to discuss needs versus wants with their children. It’s an opportunity to discuss your own money habits and prioritization.”

Digital opportunity

In today’s world, teaching kids about money means using digital tools. Most parents (70%) believe that teaching kids about money today means focusing on digital tools, rather than cash.

The study found that while 73% of parents who provide a weekly allowance use cash, P2P (peer-to-peer) payment methods, such as Zelle® or Apple Pay®, are also popular. In fact, 24% of parents giving an allowance now use P2P payments, while 20% of parents give an allowance through direct deposit to a bank account, and 14% distribute an allowance through a pre-paid debit card.

“The most surprising result of this study is how much cash is being used, even as parents understand their children prefer digital payment options,” Millar said. “Children today have different financial experiences than their parents did. We have an opportunity, and a responsibility, to provide support, guidance, and tools to help parents set their kids up for success with money.”

Talk to your kids about money

Most parents (85%) feel they should have more conversations with their kids about good money habits, but almost a third of parents (32%) feel uncomfortable talking with their kids about money.

“The value of an allowance is not only dollars and cents — it’s also the conversation and teaching opportunities parents have with their children,” said Millar. “Whether you’re giving your child $5 or $35 a week, the payment opens the door to a financial conversation. You can explain what a dollar can buy, and how budgeting for tomorrow begins today, while giving your children the ability to manage their own money with online and mobile banking tools.”

About the survey

The findings are from a Wells Fargo survey, with data collection provided by Ipsos, conducted between April 28 – May 8, 2025. A sample of 1,587 U.S. parents — aged 18 and older with at least one child between 5 and 17 years of age in the household — were surveyed online in English, as part of Ipsos Omnibus shared survey program. The results of this research have a credibility interval of plus or minus 3.0 percentage points for all respondents. Respondents were asked questions about their child in one of the following age groups: 5 to 8 years of age, 9 to 11 years of age, 12 to 14 years of age, or 15 to 17 years of age. If they had more than one child, they were randomly asked about only one of the age groups.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com

LinkedIn: https://www.linkedin.com/company/wellsfargo

Apple, the Apple logo, Apple Pay, Apple Watch, Face ID, iCloud Keychain, iPad, iPad Pro, iPhone, iTunes, Mac, Safari, and Touch ID are trademarks of Apple Inc., registered in the U.S. and other countries. Apple Wallet is a trademark of Apple Inc. App Store is a service mark of Apple Inc.

Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

Member FDIC

News Release Category: WF-ERS

View source version on businesswire.com: https://www.businesswire.com/news/home/20250702669386/en/