Allowance for kids by age: how much, how often, and whether to start
There is no official number. How to pick a starting age and an amount, decide what the money covers, and keep it simple enough to stick with.
There is no official amount. One common rule of thumb, suggested by money writer Ron Lieber, is about a dollar a week for each year of age, so $5 for a 5 year old and $7 for a 7 year old. Plenty of families start lower, and that is fine. Many kids are ready somewhere around 5 or 6, once they can count a few coins and see that some amounts are not enough for some things. Pay the same amount on the same day, agree on what it covers, and talk about it each week.
If you are searching for an allowance for kids by age chart, you have probably already noticed that every source gives a different number. That is because there is no official one. The Consumer Financial Protection Bureau lists an allowance as one way kids 6 to 12 can earn money, next to jobs for the family or others, but it does not set an amount. What you can choose with confidence is a starting age, a number that fits your budget, and a few simple rules that make the money teach something.
This guide covers the practical side: when, how much and how often. Whether to tie the money to chores is a separate debate, and it has its own guide.
What age should kids get an allowance?
Anywhere from about 4 to 7 can work. Ron Lieber, author of The Opposite of Spoiled, told TODAY in 2015 that the preschool years are a good time to begin. The CFPB’s guidance places allowance with the 6 to 12 group. Both are reasonable, because readiness matters more than a birthday.
A 2013 review for the UK’s Money Advice Service, by University of Cambridge researchers David Whitebread and Sue Bingham, explains why. By four to five, most children know you have to pay for things, but may not understand that coins have different values. By five to six, they start to see that some amounts are not enough to buy some things. Around seven, they begin to understand money as an exchange, including the change at the register.
Signs your child may be ready:
- They ask to buy small things on most store trips.
- They can count a handful of coins, or are learning to. Our guide on how to teach kids to count money can help.
- They can wait a few days for something without it feeling like forever.
- You are ready to say “that’s what your allowance is for” and mean it.
The last one counts as much as the others. An allowance only teaches if the money really is theirs to manage.
How much allowance for kids by age
The most quoted rule of thumb is the one Lieber gave TODAY: about a dollar a week for each year of your child’s age. It is easy to remember and it grows with your child. It is a starting point, not a research finding, so adjust it to your budget and to what the money has to cover.
| Age | Dollar-a-year rule | A gentler start |
|---|---|---|
| 4 | $4 a week | A few coins, or wait a year |
| 5 | $5 a week | $2 to $3 a week |
| 6 | $6 a week | $3 a week |
| 7 | $7 a week | $3 to $4 a week |
| 8 | $8 a week | $4 a week |
The “gentler start” column is simply half the rule, rounded, for families who would rather begin small. Neither column is more correct. A smaller amount that arrives every week teaches more than a bigger one that arrives now and then.
How much allowance for a 5 year old?
Under the dollar-a-year rule, $5 a week. Many families start at $2 or $3, in coins, so the child can hold and count it. At five the goal is small and concrete: notice that money runs out, and that some things cost more than you have this week.
How much allowance should a 7 year old get?
Under the same rule, $7 a week. Seven is often a good age to add a little responsibility along with the money, such as paying for their own small treats or saving for a toy over several weeks, because many seven year olds are starting to understand exchange and change.
Decide what the allowance pays for
The amount makes sense only once you know its job. Michigan State University Extension suggests that an allowance can cover some specific needs, but that there should also be some money for fun, so children practice making choices. For a young child, the list can be short:
- Small treats on store trips, like a pack of gum or a sticker book.
- Extras at outings, like a ride or a small souvenir.
- Savings toward one bigger thing they want.
A practical way to set the number: add up roughly what you already spend each week on those small requests, and hand that over instead. The money stays the same. What changes is who decides. MSU Extension calls handing out money on request probably the least effective way children receive money, because they miss the lesson that money is earned and limited.
How often to pay, and how
Weekly works best for young kids. Four and five year olds find it hard to tell how far away a future event is, the Cambridge review notes, and seven year olds rarely judge beyond about a month. A week is a wait a young child can actually picture. Monthly can come later.
Same day, same amount. MSU Extension recommends giving an allowance at regular intervals and for the expected amount, and puts it well: imagine working and never knowing when or how much you would be paid. Pick a day, set a phone reminder and keep it boring.
Use cash at first. Young children understand money best when they can see it and hand it over. The Cambridge review notes that cards stand for money, which takes another step of understanding. That is no reason to worry about cards or apps. It just means coins and bills are easier to learn on, and a family app can wait until counting is easy.
Give them somewhere to keep it. A wallet, a jar, or a few labeled jars if you want to split spending and saving. Our guide to save, spend, share jars covers that system.
Make the allowance teach: a two-minute weekly talk
The same Cambridge review found that younger children are unlikely to understand an allowance as a kind of wage. To them it can look like a sign of approval, or a kindness. That is why the money on its own teaches less than the conversation around it. On allowance day, try three questions:
- “What did you buy this week? Are you glad you did?”
- “Is there anything you are saving for?”
- “How many more weeks until you get there?”
Keep your tone curious, not corrective. If they spent it all on Monday and regretted it by Wednesday, that is the allowance doing its job. A small regret now is a cheap lesson, and it is theirs, not yours. For the bigger picture, see our guide on how to teach kids about money, and for the habit of waiting, how to teach kids to save money.
A few house rules that save arguments
- No advances, or very rare ones. Running out before allowance day is the lesson.
- No top-ups for spent money. If a toy breaks or gets lost, stay kind and do not replace it with new money.
- Decide in advance about punishment. If the allowance is not tied to chores, MSU Extension notes, withholding it later as a punishment does not work well. Choose your approach and stick to it.
- Raise it on birthdays. It keeps the rule simple and gives your child something to look forward to.
Questions parents ask
What age should kids get an allowance?
Many families start between 4 and 7. Ron Lieber, author of The Opposite of Spoiled, has said the preschool years are a good time to begin, while the CFPB lists allowance among ideas for ages 6 to 12. A child who can count a few coins and wait a few days is usually ready.
How much allowance should a 6 year old get?
There is no official amount. A common rule of thumb is about a dollar a week for each year of age, which would be $6 a week. Many families start with less, such as $3, and that works too. Consistency matters more than size.
Should allowance be given weekly or monthly?
Weekly is easier for young children. Research summarized for the UK’s Money Advice Service found that four and five year olds struggle to judge how far away future events are, and seven year olds rarely judge beyond about a month. A week is a wait they can picture.
Should I take away allowance as punishment?
It depends on how you set it up. If the allowance is given without conditions, Michigan State University Extension notes that withholding it later as a punishment tends to be ineffective. Decide the rules before the first payment and keep them the same.
Sources
- Money as You Grow: School-age children to preteens (ages 6 to 12)
- The new allowance rules: Start early and don't peg money to chores (2015), A. Pawlowski, with Ron Lieber
- Habit Formation and Learning in Young Children (May 2013), David Whitebread and Sue Bingham, University of Cambridge
- Allowances can help children learn money management skills (July 2013), Melissa Payk
Written by the WonderLab Journal editorial desk and checked against the sources above. Found something out of date? Tell us through the corrections page.
