Children and money: Generation Z allowances are flourishing
Last week, GoHenry released its 2022 Youth Economy Report on children aged 7-18 in the US and UK.
They found that American children earned a total of $26 billion from chores and allowances in 2021.
The average weekly earnings are $11.17, up 16% from the previous year, and the average weekly allowance is $10.48. The report pointed out that children’s pocket change increased more than the average increase in American adult wages (9.77%) during the same period.
Yet 34% of children say they don’t earn enough benefits and think they should earn, on average, $55 more per month.
“Part-time work has always been an important rite of passage. It gives us our first experience of the adult working world, boosts our confidence and gives us the opportunity to earn our own money for the very first time,” said Louise Hill, COO and co-founder in the report. “But the nature of part-time work is changing – and it is changing rapidly. In this first Youth Economy Report of 2022, we take a closer look at how children and teenagers make money in the UK and US, and look at how their first jobs will impact about their future career path and earning potential.
GoHenry: Gen Alpha and Z Here Grinding
The Youth Economy Report features data from over 52,000 U.S. GoHenry members who signed up from January 1 through October 31, 2021. GoHenry’s full Youth Economy Report is available for download on gohenry. com. Nine years after its launch, GoHenry offers fin education for kids ages 6-18, in addition to debit cards and parent-controlled banking. The company has developed its vision into a movement of 2 million members who believe in financial education.
In the report, most children said earning their own money and taking matters into their own hands was essential. Even 70% of six-year-olds in the United States say earning their own money is vital. In addition to other part-time jobs and allowances, the children earned money in these enterprising ways (the children’s income streams overlapped).
- Pet sitting and dog walking (41%)
- Online games (35%)
- Selling things online (34%)
- Social media influencer (29%)
- Investing/trading stocks (28%)
- Content creator (28%)
- Invest in cryptocurrency (27%).
The second annual report also reveals that young people are earning money through paid individual tasks, which can be defined as tasks and managed in the GoHenry app, which has continued to grow. American children earned $3.1 billion by completing paid GoHenry scheduled tasks in 2021, up 8% from the previous year. One of the best incomes for American children? Like a job in the gig economy, doing homework is a chore that pays around $1.93 per person.
Other high earners (take note of rents:)
“In this robust economy, kids are looking for entrepreneurial ways to support their savings and spending goals. We see Gen Z and Gen Alpha taking on an increasing number of paid jobs and developing their business acumen to increase their earning potential,” said Dean Brauer, Co-Founder and President of GoHenry. “At GoHenry, our goal is to make sure that once they win, they are confident in managing a budget, setting aside savings and spending responsibly – and the kids agree . More than 80% say good money management skills will help them in their future careers. »
Changing earnings habits could also have an impact on the type of jobs children will hold in the future. Almost half, or 47%, of kids said their top priority was doing something they’re passionate about while earning a high salary. Children and teenagers identified their 10 favorite professions:
- IT / software / app / game developer
- Health care
- Food / restaurant / cafe
- social media influencer
- Graphic design
- Teacher / education
The report says a quarter of young people (25%) now aspire to start their own business rather than working for a company or startup. Thus, their first work experience is increasingly likely to involve being their own boss.
Data and methodology
The data was also based on a consumer survey conducted by Censuswide in December 2021 of 2,007 American children aged 6 to 18. The weighting was completed by calculating the Task’s revenue per GoHenry member (who used the feature) and multiplying it by the total population of children ages 6-18 in the United States, an estimate from the Office of the 2019 U.S. Census and United Nations Department of Social and Economic Affairs. Business.
“In the United States, the Pew Research Center found that in the summer of 2020, teenage summer employment fell to its lowest level since the 2007-2009 recession, with less than a third of American teens with paid summer jobs,” Brauer said. “While this decline may be partly explained by the COVID-19 pandemic – with much of the hospitality, leisure and retail industry closed during the lockdowns, there was significantly less opportunities to find paid work – the nature of part-time employment was already changing by the time the pandemic hit.
Brauer said that instead of paper routes and waiting tables, teens realized they could earn more selling crafts on Etsy and trading sneakers than traditional entry-level jobs.
“As our research shows, there are increasing opportunities for children and teens to be their bosses and use entrepreneurial means to earn money,” Brauer said.
Intensely energetic journalist asking about the collision between Silicon Valley, Wall Street and everywhere in between. Studied history at the University of Delaware, learned to write at Review, and unbanked. Email [email protected] with story ideas, questions or to say hello.