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MILWAUKEE (Business Wire EON) April 9, 2008 -- Ironically, men that do choose to give allowances are more generous than women. In response to the question about how much is appropriate to give to a 10-year-old per week, 12% of men responded with the maximum option - more than $15.00 per week - versus only 8% of women who would pay this much.
"Family is the greatest influence in shaping young Americans' financial attitudes and behaviors, and allowances are an excellent way for parents to start teaching their kids to manage money," said Meridee Maynard, Senior Vice President, Northwestern Mutual. "A small weekly allowance can help parents teach the concepts of saving, spending, giving and investing."
From January through March 2008, visitors to the financial literacy Web site www.TheMint.org were invited to answer two questions related to allowances. Nearly 2,000 people from across the country weighed in about how much and what age is appropriate for children receiving an allowance. The results were then analyzed based on several demographic factors, including the age, gender and location of respondents.
Best Places for Earning an Allowance
Parents in the Midwest have the tightest purse strings, with half of respondents giving less than $5.00 a week to a 10-year-old, while many parents in the South and Northeast would give up to three times that amount.
Nationally, more than 70% of respondents agree that a 10-year-old should receive between $1.00 and $10.00 a week as an allowance. Thirty-eight percent think $1.00 - $5.00 is most appropriate, which was followed by 34% citing $6.00 - $10.00.
What Age is Appropriate?
Most respondents (65%) agree that the appropriate age for children to start receiving an allowance is between six and 11 years. One third believe between ages six and eight is the most appropriate time and in a close second, 32% of respondents feel it should be between ages nine and 11.
In an interesting twist, kids who responded are stricter than the adults:
Thirty-seven percent of those age 17 or younger believe children should begin receiving an allowance between ages nine and 11, and an additional 24% think children should be older than 12.
Thirty-four percent of respondents age 60 or older selected the youngest age range of five years or earlier.
About TheMint.org
Launched in 1997, TheMint.org is a collaboration between the Northwestern Mutual Foundation, the charitable arm of Northwestern Mutual, and the National Council on Economic Education (NCEE). The site provides tools to help parents as well as educators teach children to manage money wisely and develop good financial habits: the building blocks for a secure future.
This poll marks the first of a planned series of quarterly polls by TheMint.org, with the aim of continued awareness of financial literacy issues. Poll results are archived on the site and can be viewed at www.themint.org/polls/.
About Northwestern Mutual
The Northwestern Mutual Life Insurance Company, Milwaukee, WI (Northwestern Mutual) has been helping policyowners and clients achieve financial security for more than 150 years. The company is an industry leader, with over $1 trillion of life insurance protection in force, and maintains the highest available ratings for insurance financial strength from all four major rating agencies: Standard & Poor's, Fitch Ratings, A. M. Best and Moody's.
For 25 years, a FORTUNE magazine survey has named Northwestern Mutual "America's Most Admired" company in the life/health insurance industry. Further information on Northwestern Mutual, its subsidiaries and affiliates can be found at: www.nmfn.com.