Canadian parents are facing a dilemma when it comes to giving their kids an allowance, according to a recent report by money management app Mydoh. The study, which interviewed 700 adults with children aged six to 17, found that parents are divided on giving their kids an allowance, with 47 per cent having an allowance routine and 53 per cent opting out of allowance altogether.
Parents’ top reasons for not giving their kids a regular allowance are necessity (56 per cent), age (28 per cent), cost (23 per cent), value (12 per cent), and logistics (five per cent). Those who do give their kids an allowance have their own insecurities, with 22 per cent being unsure if they are using one effectively and 13 per cent not feeling confident about how much money they should give.
Financial counselor Jessica Moorhouse emphasized the importance of using allowance as a tool to teach kids about financial independence. She mentioned that while some parents may struggle with consistency in giving allowances, it is crucial to create a routine to avoid confusion and negative associations with money.
The report also highlighted that Alberta, once viewed as a bastion of affordability, is facing challenges in its housing market, particularly in Calgary. Economists agree that Calgary’s housing market is the hottest in the country, with vacancy rates at historic lows and rents projected to reach Toronto levels in a few years.
Overall, the report sheds light on the uncertainties many Canadian parents feel about allowances and the importance of financial education for children in an increasingly cashless world.