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What's the Right Allowance Amount?
Times have changed alot in the past couple decades, but the right allowance amount depends on your income and the age of your child
A couple decades ago, an allowance for a 10 year old used to be about fifty cents per week. Now, depending on the family, the right allowance amount can be as high as ten or twenty dollars per week.
What makes sense for today's kids?
First of all, the parents income needs to be taken into consideration first. If you're having a hard time making money and are struggling to make ends meet, the allowance for the kids may have to wait, or it can be small until you can afford to give them more.
Secondly, the age of the child is the most important factor in determining the right allowance amount. The following are general guidelines based on common sense and survey data.
General Allowance Amount Guidleines by Child's Age:
| Age in years | Weekly Allowance Amount | Reason |
| 0-4 | $0 | Generally, toddlers and children this young have no concept of money and mommy and daddy provide all their needs anyway. |
| 5-7 | $2 | Kids in this age group are starting to learn what money is and how it works. This is "dollar store" money. |
| 8-10 | $3-4 | Kids now understand that saving their allowance each can help them buy things, they really want. |
| 11-12 | $5 | Children are now desiring things that cost a little more, but they also are learning the value of saving and budgeting. |
| 13-15 | $10 | In these early teen years, kids are starting to want to spend money alot more. Keeping it at $10 gives them more incentive to earn extra money. |
| 16-18 | $20 | Gas and food become big expenses now that these kids are wanting to do almost everything with their friends. |
Keep it Real
Keep in mind that these are only recommendations, and there are so many factors that will swing the amount one way of another.
- Is your child extra responsible or not responsible enough? You may want to offer to match their savings to some degree to reward them.
- Do you live in an expensive area? Increase your childs allowance amount in proportion to the area you live in.
Will You Let Your Kids Work?
If so, you may be able to back down a little bit on the allowance if they are working a part-time job in high school.
If you dont want your child to be working a real part time job (retail or fast food, etc.), then you may consider increasing their allowance, or giving them odd jobs around the house to earn the extra money it takes.
An Allowance is Not Related to Chores
Keep this distinction clear. Your child is required to do chores because they are a part of the family. The allowance is unrelated, given to them for the privilege of being part of the family.
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