Pocket Piggy
Common ways families set allowance
There's no single right amount. What matters most is that the number works for your budget, feels fair to your kids, and stays consistent. Here are a few ways families approach it.
Per year of age
A common starting point is a set amount for each year of a child's age, paid weekly. At $1 per year of age, an eight-year-old gets $8 a week and a five-year-old gets $5. It's easy to explain, it grows as your kids do, and siblings can see why the amounts differ. Treat it as a place to start, not a rule. Plenty of families use half that, or a different amount, depending on what the allowance is expected to cover.
A flat amount
Some families give every kid the same amount. That's simple, and it can work well when kids are close in age. As they grow apart, older kids usually take on more expenses, like lunches out or their own phone top-ups, so many families move to an age-based amount over time.
Earned by chores
Others pay per chore: an amount for each job done, added up at the end of the week. This makes the link between work and money very clear, and it rewards extra effort. It does take more tracking, which is where a chore chart comes in handy.
Should allowance be tied to chores?
Families feel differently about this, and both approaches can work. Some keep everyday chores separate from money, on the idea that helping at home is part of being in a family, and give allowance as a way to learn about money. Others pay for chores so kids see money as something earned. A common middle ground is a small base allowance for learning to manage money, plus extra for bigger or optional jobs. Whatever you choose, explain it clearly and stick with it.
Why split into spend, save and give
Splitting every payment into three parts turns allowance into a lesson about choices. The spend part is theirs to enjoy, and making a few poor purchases with small amounts is part of learning. The save part teaches patience: picking a goal and watching it grow. The give part helps kids think about other people, whether that's a charity, a friend's birthday or a cause they care about.
The split itself is up to you. 70% spend, 20% save and 10% give is simply a starting point that's easy to follow. Some families save more as kids get older, or let kids choose their own split once they've had some practice.
Tips for making it stick
- Pay on the same day each week. A regular Pay Day builds trust and makes planning easier.
- Agree what allowance covers. Treats, toys, or later on, things like clothes or outings.
- Let them make mistakes. Running out before Pay Day is a lesson that sticks.
- Review it on birthdays. A yearly check-in is a natural time to raise the amount or the responsibilities.
Planning chores too? Try the chore chart maker or grab a free printable chore chart.