Children in the U.S. are using the pandemic as an opportunity to get more cash.
According to a recent study of 4- to 14-year-olds called the Kids Allowance Report, children are upping their earnings amid the pandemic by doing more chores around the house and selling their used items online.
The average amount of chores completed per week increased by 236% between Jan.-March of 2020 and the same period in 2021 — and the average kids allowance rose from $7.26 to $9.35 over that same period.
Many of the chores kids claim to be doing during the COVID-19 pandemic are considered traditional housework, like mowing the lawn, washing cars and raking leaves.
These entrepreneurial kids are not just doing more chores while being home during the pandemic. They are also selling their stuff online.
U.S. kids have taken to e-commerce platforms like eBay
to sell items like toys and clothing, according to the study. The percentage of kids who were selling items online between Jan.-march of 2020 was 2%, but that number rose to 12% a year later.
“What’s interesting is that our data shows that kids are earning more than a year ago through seeking out extra jobs to do within the home, and selling items through online platforms, indicating how time at home has stimulated entrepreneurialism within families,” Will Carmichael, CEO of allowance and chore tracking app RoosterMoney, said in the report.
“Building good habits and managing money with confidence has never been more important. It’s great to see that, despite the challenges for families stuck at home, it has encouraged opportunities for kids to develop money skills that will stick with them for life,” he went on to say.
This entrepreneurial spirit appears to be translating to sound money decisions as kids say they are saving 48% of their earnings, a higher number than most adults.
The Kids Allowance Report was done with a sample of 50,000 kids ranging from ages four to 14.