How much does a tooth fairy 'pay' in the USA and how to teach children how to handle money with it
'03.05.2021'
Source: Grow
The average tooth fairy “payout” for children in the United States is $ 4,90 per tooth, up 2,7% from last year, according to a new 2019 report from RoosterMoney. In the United Kingdom, 35 children between the ages of 000 and 4 were surveyed in the United States who use a mobile app to receive and manage all kinds of gift money.
Multiplying this amount by more than 20 milk teeth, it is easy to calculate that a child can get almost 100 dollars from a tooth fairy. This is money with which you can teach your child to earn and use personal finances in the future, writes Grow.
Children get even more money.
Tooth Fairy is not the only source of increased child spending. The weekly pocket money given to the child by the parents also increased by 3,6% compared to the 2019 year, and the average weekly payout is about 9,39 dollars.
With pocket money, fairies' payouts and other gifts, children this year 'earn' an average of about $ 500.
According to experts, such an increase is promising, especially given concerns about a possible economic downturn: two-thirds of Americans fear that a recession could happen next year.
“This is a positive sign that parents are willing to ignore short-term economic uncertainty,” said James Kassam, head of marketing at RoosterMoney. “I hope this is an indication that they are prioritizing their child's long-term financial education.”
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How to teach children financial literacy
Experts say giving kids a hands-on money management experience is key to helping them form good financial habits. The RoosterMoney survey found that American children learn to save and save with pocket money, and Kassam thinks this is a good indicator that children are developing stronger deferred gratification skills.
“They're raising money for what we would call high-value goods, ambitious things like large Lego sets, cell phones, game consoles and the like,” he says. - I think this is a positive sign. Unlike saving for small items, this shows ambition. "
Experts believe that it is very important to establish a permanent scheme from an early age, regardless of whether you give money for help around the house or give a certain amount of pocket money every week. A recent study at Cambridge University suggests that children can develop a confident saving skill by the time they are 7 years old, and the National Education Association (NEA) has developed financial literacy lesson plans for children over the age of 4.
“What you are doing is trying to create a salary-like system,” said Paul Golden, managing director of media and communications at the National Endowment for Financial Education. "If they spend all the money within three days after receiving the pocket money and the money runs out, they will have to wait until they get paid again."
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Personal finance expert Farnosh Torabi also recommends that parents use gift money - including birthday checks and tooth fairy money - to provoke discussions with children about interests and savings.
“While your 4-year-old may not be mature enough to take smart moves with large sums of money, don't underestimate his or her ability to notice positive financial modeling,” she recently wrote.
This is an easy way to guide your child on the path to financial success.
“Talking about money as early as possible is the key,” says Kassam. "These statistics only support the fact that if you start attracting children with money earlier, they will develop positive saving and saving habits."
