Age-Appropriate Allowance For Kids

Providing your child with an allowance is one of the most basic issues you face when raising kids. Therefore it’s important to understand it and use it as a tool for your child to learn good money habits at an early age.

What is an Allowance?

An allowance is an amount of money that you give to a child to spend on whatever he or she chooses. It’s usually (but not always) a weekly amount of money earned through performing specific tasks around the house or at school.

What is a Fixed Allowance?

A fixed allowance gives kids money at the beginning of every week no matter how much they do or don’t accomplish throughout the week.

What is a Chore-Based Allowance?

As opposed to the fixed method discussed previously, a chore-based system relies on your child performing certain chores each week to earn money for their wallet.

How Much Allowance Should a Child Get by Age?

When giving allowance to your child, consider following these three tips: define what an allowance is, how much you’ll give them and create a plan.

How Much Should I Give My Kid for Allowance?

If you’d like to give your kids an allowance, set your reasons for giving an allowance and consider the financial situation of your household. What specific financial responsibility skills do you want your kids to learn?

An Allowance Rule of Thumb

Traditionally, kids get an allowance of $1 to $2 per week for each year in age. So, if you have an 8 year old and a 12 year old, you might consider paying them $8 and $12 per week, respectively.

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