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An overwhelming 92% of American parents say it is very important that children understand how to effectively manage their money, according to a new poll conducted in August for the AICPA by The Harris Poll.

One way parents teach children about money is to give them an allowance. The survey found that children under age 25 and living at home receive an average of about $120 a month in allowance.

Eight of ten parents (80%) said their children were required to do at least some chores in exchange for their allowance. On average, children were expected to do about five hours of chores a week.

The items children were most likely to spend their allowances on included outings with friends (45%), digital devices or downloads (37%), and toys (33%).

As children determine how to use their money, parents can take the opportunity to teach them how to save, said Sean Stein Smith, CPA, CGMA, DBA, a member of the AICPA’s National CPA Financial Literacy Commission and assistant professor in the business and economics department at Lehman College in New York City.