May 25, 2022
How much money should you give your kids as an allowance? It can be tough to decide, especially since there’s no universal answer that fits everyone.
In this article, we will take a look at the average allowance for kids by age and discuss the different ways to set an allowance. We’ll also discuss the benefits of giving an allowance and provide some tips on how to decide how much money you should give your kids!
Allowance for Kids by Age
Every family is different when it comes to giving allowance to their kids. Here is the average weekly allowance amount for children between the age of 4 and 14 based on a survey by Rooster money (as explained in The Balance):
Kids Between 4 and 6 Years Old
Most parents introduce allowance to their kids around the age of 5 or 6. Start by giving them a small amount like $1 to $2 per week and you can later increase it up to $6 per week.
Kids Between 7 and 9 Years
As your kids get older, you can start increasing their weekly allowance. The average allowance by age for children between 7 to 9 years is $8 to $9.
Kids Between 10 and 12 Years
Most 10-year-old kids get around $10, 11-year-olds get $11.15, and 12-year-olds get $13.11. By this age, most parents also start introducing an extra allowance for each chore they do.
Kids Between 13 and 14 Years
The average allowance for a 13-year-old is $14.80, while for a 14-year-old it’s $15.70.
As children reach their teens, the allowance amounts can vary greatly because parents start using different approaches to determining the allowance.
|DID YOU KNOW: 35% of parents give an allowance between $11 and $20 per week while only 7% give $51 per week.|
How to Set an Allowance by Age for Children
There are different ways you can set an allowance for your children. Here are some of the most common methods:
Pure Allowance Strategy
In this approach, you pay your children an allowance regardless of any household duties they have to do. It is a good option for children who do their chores on their own and it teaches them that household work is a part of family life and that they won’t get paid for it in the future.
A common rule of thumb used by parents for determining kid allowances is paying $1 to $2 per week for each year of the kid’s age. So, a 10-year-old should get anywhere between $10 to $20, while a 15-year-old should get $15 to $30 per week.
You can also start paying your children for different chores they do around the house if you want your children to earn their allowance. This approach can be suitable for children who are reluctant to help out with the chores as it will teach them the value of working. Here is an average allowance for chores:
- Washing the car: $3.81
- Washing windows: $1.94
- Gardening: $3.07
- Mowing the lawn: $7.49
- Raking leaves: $4.48
- Washing dishes: $2.03
- Vacuuming: $2.55
The chores should be age-appropriate and you’re the best judge of which chores you should assign. For example, if you have a small pet for your child, you can assign simple tasks related to the pet, such as feeding it or brushing it.
The allowance will also depend on the size of your family and how often they have to do the chores.
You may want to try a hybrid approach. With this method, you would give your child a pure child allowance per month (no strings attached) plus an additional amount as a payment for completing their chores. For example, you may give them $20 per week plus $2 for every chore they complete. This can be a great way to teach your children the value of work while still giving them some financial freedom.
Another option is to use a goal-based approach. With this method, you would give your child an allowance that they can use to save up for a specific goal. For example, they may need to save $20 for a new Xbox One game or $100 for a good Chromebook that is suitable for kids. This approach can teach your children about budgeting and help them develop money management skills.
Benefits of Giving an Allowance
Many parents wonder, should kids get an allowance? There are several benefits of giving your kids an allowance and here are some of them:
Teaches the Value of Money
Giving your children an allowance can help them understand the value of money. They will learn that they need to be careful with their spending. This can be a valuable lesson that will help them throughout their lives.
Helps in Budgeting
Many adults still find it difficult to budget their income and expenses. Giving your kids an allowance can help your children learn early on about budgeting and making money decisions. They will need to figure out how to best use their allowance to meet their financial goals. Giving them an appropriate allowance by age is a great way to develop good financial habits and teach them about responsible money management.
If you tie allowance to chores, it can encourage your children to work hard and be responsible. They will learn that they need to put in some effort if they want to earn money. This is a valuable lesson that will serve them well when they start looking for a job.
Introduces Them to Banking
Allowances for teenagers can be a great way to introduce them to banking! Instead of giving cash, you can deposit the amount in their bank accounts. This can be a great introduction to banking and other financial concepts which will help them in their adulthood.
|DID YOU KNOW: Giving your kids an allowance also helps them to learn to differentiate which item is worth buying. This can prevent them from making impulse purchases in the future!|
Tips for Giving Allowances
Here are some tips you should keep in mind when giving age-appropriate chores and allowance sums to your children:
It’s important to be consistent when giving an allowance. Whether you give it per month, per week, or even per day, make sure to stay consistent and give the same amount each time. This will help your children to learn to budget and plan their expenses.
Set Clear Expectations
When giving an allowance, be sure to set clear expectations. Explain to your children how much they will receive and when they will receive it. This will help them understand the rules and know what to expect. Make sure to talk to them before making any changes in their allowance and listen to their point of view.
Use Grocery Allowance
Even after assigning chores and allowance by age, there can be some instances where parents don’t have the money to pay the kids. While it is important to remain consistent, the allowance doesn’t necessarily have to be in cash! You can use a grocery allowance instead. This involves giving them a set amount of money each week to spend on groceries.
Remember, It’s More About Financial Responsibility Than the Amount
When giving an allowance, it’s important to remember that it’s about the practice, not the amount. The goal is to teach your children about money management, not to make them rich. Therefore, don’t worry if you can’t give them a large allowance amount by age. Even a small amount can be helpful in teaching them about budgeting and financial responsibility.
Giving your children an allowance can be a great way to teach them about the value of money. It can also help them learn about budgeting and making financial decisions. Whatever type of allowance you choose, remember, it’s about the practice, not the amount. Ultimately, the goal is to teach your kids the value of money and how to manage it responsibly.
While most parents start giving allowances at the age of 5 or 6, you should introduce an allowance when you think your child is ready as every child is different.
The amount of allowance you give your child depends on your budget and what you feel is appropriate. You can start by paying $1 to $2 per week for each year of the kid’s age.
The average allowance for kids who are 12 years of age is $13.11 per week. However, each child is different, and you’re the best judge for determining the exact amount!