Allowance: how much, when and what for

An allowance gives kids real money to practice with. The amount matters less than being consistent and being clear about what it's for.

Choose an approach

• Fixed allowance: a set amount each week, separate from chores, to practice managing money
• Earned: paid for specific jobs beyond normal family chores
• Mixed: a small base amount plus paid extra jobs

How much

• A common starting point is about $0.50 to $1 per week per year of age, but any amount works
• More important than the amount: what the child is expected to pay for
• If they'll pay for some of their own clothes or activities, the amount should be higher

Make it work

1. Pay on the same day each week
2. Agree what it covers in writing
3. Let them make small mistakes; buying something disappointing is a cheap lesson
4. Don't rescue them before the next payday
5. Review the amount once a year, on a birthday

General educational information, not financial advice. Your Money Stretcher isn't paid by any bank, lender or company mentioned here.