Money
How much allowance should my child get?
Quick answer
A common starting point is 50 cents to a dollar per year of age, each week. That puts a 10-year-old somewhere between $5 and $10 a week. But the amount matters less than what you decide the allowance is for: if it only buys sweets, almost any number works. If it has to cover things your child would otherwise ask you for, it needs to be big enough that saying no to themselves is a real decision.
What to consider
- What you want it to teach
- Waiting, choosing between two things, or covering their own costs. These need different amounts. An allowance meant to teach saving has to be large enough that saving half still buys something eventually.
- What it has to cover
- Decide explicitly what moves onto their budget. If snacks, small toys, and gifts for friends become theirs to fund, the number goes up, and so does the learning.
- Whether it is tied to chores
- Paying for everyday family chores tends to turn help into a transaction. Most families do better keeping a baseline of unpaid family responsibilities, with optional paid extras on top.
- What you can sustain
- An allowance you quietly stop paying after two months teaches something you did not intend. Pick a number you will still pay in six months.
- Your child stage
- Under about six, money is close to abstract. From six to nine, saving toward a goal starts working. From ten, real trade-offs and mistakes become the point.
The numbers
The common convention
$0.50 to $1.00 per year of age, weekly
So roughly $4 to $8 for an eight-year-old, or $6 to $12 for a twelve-year-old. This is a widely repeated rule of thumb, not a researched benchmark.
A frequently used split
50% spend, 40% save, 10% give
Also a convention rather than a finding. Its value is that it makes saving automatic instead of a decision your child has to make every week.
What the evidence actually supports
Consistency over amount
There is no strong public dataset establishing a correct allowance figure by age. What is defensible is that a predictable, regular amount your child controls creates more learning than an irregular larger one.
Your options
Work out your number
This runs in your browser. Nothing you type here is sent to us.
Your action plan
This week
- Write down, in one sentence, what you want the allowance to teach.
- List what it will now cover, and what stays on your budget.
- Pick the amount and the day it is paid, and tell your child both.
- Decide whether saving is compulsory or encouraged, and say which.
Next month
- Review whether the amount was too small to make any decision interesting.
- Check whether you actually paid it every week without being reminded.
- If saving is not happening, make it automatic rather than adding a rule.
Watch for
- Your child starts expecting payment for ordinary family help.
- The allowance quietly lapses, then restarts, which teaches unreliability.
- They spend everything within a day, every week, and never feel a trade-off. That usually means it covers too little.
- You end up topping them up anyway, which cancels the whole lesson.
Common questions
What age should we start?
Most families find it starts working around six or seven, when a child can hold a goal in mind for more than a few days. Earlier is not harmful, it just teaches less.
Should I pay for good grades?
It is a separate question from allowance, and it tends to work poorly as a long-term motivator. If you want to reward school effort, one-off recognition usually causes fewer problems than a standing rate.
What if they spend it all immediately?
That is the lesson working, as long as you do not replace the money. The cost of the mistake at nine is trivial. At nineteen it is not.
Where these numbers come from
- Consumer Expenditure Survey U.S. Bureau of Labor Statistics Household spending by category and family composition.
Ready to build the whole money system?
You now know what to do. This is for actually running it.
A practical system for teaching allowance, saving, spending, earning and responsibility, organised by age. The answer above is free and always will be. This is for the part that has to happen every week afterwards.
Teach money and responsibility.
Money-Ready Kid
Build your child's money habits before money becomes a problem.
Recommended here because you are working on money.