The FINANCIAL — NEW YORK — School may be out, but spending is definitely up. American parents will shell out $70 billion or more for summer activities, according to the latest American Express Spending & Saving Tracker.
The average parent reports spending $958 on average for fun summer activities per child, up 12% from 2013 and a whopping 59% from 2012. Even so, summer won’t be all fun and games. Most parents (98%, on par with 2013) say they’ll be putting their kids to task at home doing chores to earn allowance for summer fun – though fewer say their teenagers intend to pursue a summer job (30% vs. 35% in 2013), according to American Express Company.
“There will be no rest for weary kids this summer, as parents shell out more to keep their kids busy outside of the school year,” said David Rabkin, Senior Vice President of Consumer Lending Products at American Express. “Throughout the year, we’ve seen higher spending in a number of areas, like travel, shopping and entertainment – so it’s no surprise that parents are planning to spend more to keep their kids active. This is good news for seasonal retailers, as well as camps, theme parks and other entertainment venues,” he added.
Teens Put in Summer Hours, but All Kids Still Report to Mom and Dad
Summer jobs will remain a popular pastime for teenagers, according to nearly a third (30% vs. 35% in 2013) of the parents who say their teens are planning to enter the workforce this summer. Childcare and food service still rule as the most sought-after pursuits; the top five jobs for teens this summer are:
Babysitting (24% vs. 12% in ’13)
Fast food service (24% vs. 27% in ’13)
Grocery store (20% vs. 16% in ’13)
Landscaping (16% vs. 15% in ’13)
Retail store (11% vs. 7% in ’13)
Parents say that there’s been a shift from 2013, as more teens are opting to spend their summer earnings (54% vs. 49% in 2013), rather than save it (46% vs. 51% in 2013). Of those who are earmarking their spending, many teens are expected to use the money towards a car or vehicle (27%) and to cover the insurance (32%). Another quarter (25%) will put their earnings towards college tuition, according to American Express Company.
Nearly all parents (98%, on par with 2013) report assigning summer chores to their kids. In return, most will grant an allowance (83%), up from 66% in last year and 61% in 2012. This year, kids can bank on earning $27 per week on average, down slightly from $32 in 2012. The most common chores for kids of all ages include:
Cleaning their rooms/making the bed (85% vs. 87% in 2013)
Taking out the trash or recycling (63% vs. 65% in 2013)
Doing the dishes (55% vs. 57% in 2013)
Caring for a pet (54% vs. 56% in 2013)
Dusting or vacuuming the house (48%, not asked in 2013)
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