A new study has found that the gender pay gap may start years before a person even receives their first paycheck.
The study, co-authored by UVA Darden associate professor Ray Charles "Chuck" Howard, looked at more than one million children in the U.K. and found that girls ages six to ten received 6 to 11% less money each month from their parents than boys.
The difference wasn’t in regular allowances. Researchers found no gender difference in allowances. Instead, the gap came largely from extra money and gifts parents gave their kids.
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"What's interesting is that in adolescence, from age 11 to 15, the gap diminishes and then actually reverses on a monthly basis, so that the girls, by age 15, are receiving somewhat more than boys," explained Howard.
Even though the gap narrowed as kids got older, girls still had about 6.5% less in savings at age 15.
Researchers say one simple fix is giving kids consistent allowances instead of routinely handing out extra cash.
Howard said in the working study that he believes this early gap may affect financial habits in adulthood.
"It means boys have money in their pockets that they get to decide what to do with on a more frequent basis than girls," said Howard. "We know from other research that in adulthood, men have higher financial literacy. Men have higher financial confidence. And we think what we're seeing here foreshadows that."
