Pocket money and allowance: how much to give, and when to start

In short: there is no correct amount. Pick a sum that lets your child make real choices, pay it on a predictable day, and agree in advance what it must cover. Decide whether it is linked to chores, and be consistent. The point of pocket money (called allowance in the US) is practice, not payment.

“How much pocket money should I give?” is one of the most common questions parents ask, and the honest answer is that it depends on your family, your budget and what you want the money to do. This guide walks through the decisions that matter, with some rules of thumb you can adapt.

What is pocket money for?

Before choosing a number, decide on the purpose. Families usually pick from three:

• A teaching tool. Regular money, handled by the child, with no rescue when it runs out.
• A way to cover specific costs. For example, a teenager’s own clothes, phone top-ups or social life.
• A reward. Payment for jobs done.

Many educators favour the first and second. A reward can be added on top, but if pocket money is only a reward it teaches less about managing a regular income.

When to start

Many families begin around age 5 to 7, when children can count coins and understand that things have prices. At that age, small amounts paid weekly work best, because a month is a very long time to a six-year-old. Some families start earlier with a jar and a few coins. There is no deadline: if your child is older and you have not started, start now.

How much? Some rules of thumb

There is no official figure in the UK or the US, and surveys of what families actually give vary widely, so be wary of anyone quoting a single “average.” A few approaches families use:

• Per year of age. A popular rule of thumb is about £1 or $1 per year of age, per week. Under it a 9-year-old would get £9 or $9 a week. Many families find that too high for young children and too low for teenagers, so treat it as a starting point.
• The “what it must cover” method. List what the money is expected to pay for, such as sweets, magazines, game credit or bus fares, add it up, and use that as the budget. This ties the amount to responsibility.
• The gradual raise. Start small and increase it on birthdays, each time handing over a new responsibility. A rise that comes with a new cost, like paying for their own cinema trips, feels fair.

Whatever you choose, make it enough that your child can save for something meaningful within a few weeks, and not so much that every impulse is affordable.

Weekly or monthly?

Younger children do better with weekly money because they can see the result of their decisions quickly. Teenagers can usually handle monthly money, which teaches planning across a longer period and mirrors how adults are paid. A switch from weekly to monthly makes a good milestone around 12 to 14.

Should pocket money be linked to chores?

This is the great pocket money debate. There are reasonable arguments on each side.

For linking: it shows that money comes from effort, and many children respond well to a clear exchange.

Against linking: household tasks are part of living in a family, and if chores earn money, a child may reasonably ask to be paid for everything, or to opt out by “not needing the money” that week.

A common middle path is to give a regular amount unconditionally, expect a set of basic jobs without payment, and offer extra paid jobs, such as washing the car, for anyone who wants to earn more. Whichever way you go, the key is to be consistent. Changing the rules week by week teaches children that the rules are up for negotiation.

Make it work: five habits

1. Pay on the same day. Reliability matters more than the amount. If you forget, your child learns that money promises are flexible.
2. Do not bail them out. If it is gone by Tuesday, it is gone until next payday. The sting is the lesson. Explain this in advance so it is not a surprise.
3. Encourage splitting. A simple split, such as spend, save and give, gives children a template for handling any income. A third of each is a starting suggestion, and you can adjust it.
4. Match savings for a goal. Offering to add a little when they save for something big can make saving feel rewarding. Keep it modest and for specific goals.
5. Review it together. Every few months ask what is working, whether it is enough, and whether it is time for more responsibility.

Cash, bank account or app?

For young children, cash is best, because they can see and feel it going down. Around 8 to 11, a children’s savings account lets them watch interest build. For teenagers, a bank account with a debit card, often available from around 11 to 13 depending on the provider and country, lets them practise managing money digitally with a parent able to see what is happening.

Check the terms of any account carefully, including fees, how interest is paid and what happens at age 16 or 18. Some pocket money apps and prepaid cards charge monthly fees, so compare costs before committing.

Common questions

My teenager says everyone else gets more.

This is normal. Listen, then explain your reasoning. If it is a fair point, a raise with a new responsibility is a good reply. If not, it is a useful lesson that families make different choices.

Should I take money away as a punishment?

Many advisers suggest not. Using pocket money as a discipline tool muddles its purpose, and children may stop seeing it as theirs to manage. Keep consequences for behaviour separate.

What if they spend it all on rubbish?

That is allowed, within reason. The goal is for them to learn from decisions while the stakes are small. If they regret a purchase, ask what they would do differently, and let that be the lesson rather than a lecture.

Is it OK to give money for good grades?

Opinions differ. Some families find it motivating and others worry it undermines a child’s own drive to learn. If you try it, set clear criteria and review whether it is working.

From pocket money to bigger ideas

Once your child is comfortable saving and spending, the natural next step is learning why money left alone can grow, which our guide to compound interest explains. For a bigger picture of what to teach at each age, see our guide to teaching your child about money, age by age.

General information for families, not financial, tax or legal advice. Rules, rates and limits change and differ between the UK, the US and elsewhere, so check official sources (such as gov.uk or irs.gov) or speak to a qualified adviser before making decisions with real money. We make InvestiKid, so we have an interest in it; the advice in this guide stands without it.