Let's talk about allowance, that money we give our kids to teach them about financial literacy. How much should we be giving out? How often should we give kids allowance? When is the right time to start? Don't worry, we've got you covered with this handy guide to navigating the world of kids' allowances.
What is allowance for kids and teens?
Allowance is a set amount of money that parents give to their kids on a regular basis, typically weekly or monthly. It's a kids first step into money management and financial responsibility - they get to decide how to spend or save it, and learn some valuable lessons along the way.
Every family is different so there's no one-size-fits-all approach to allowance. Some parents use allowance apps like Till Financial to automate the process and send money straight to their kids debit card. Others prefer the classic cash-in-hand method. Whatever works for you!
Why should kids get an allowance?
Giving your kids allowance isn't just about providing them with spending money, it's a powerful tool for teaching financial literacy. When kids have their own money to manage, they start to understand the value of a dollar and the importance of making smart choices.
Allowance also gives kids a sense of independence and autonomy. They get to make their own purchasing decisions (within reason, of course). Plus its a great way to start conversations about budgeting, saving, and prioritizing their wants and needs.
When should I start giving my kids an allowance?
This is a personal choice that depends on your family's values and your child's maturity level. Many parents start around age six, when kids begin to grasp basic math and the concept of exchanging money for goods. Starting early can help build a strong foundation for financial literacy.
As kids enter their pre-teen years (around age 10-11), their financial needs and understanding grow. This is a great time to introduce a more structured allowance system, perhaps tied to specific chores and responsibilities. It reinforces the connection between work and earning money.
How often should I give my kid allowance?
Again, this depends on your child's age and your family's preferred approach. For younger kids, a weekly allowance aligns with their shorter attention spans and immediate needs. It allows for frequent budgeting lessons and quick feedback loops.
For older kids and teens, bi-weekly or monthly allowances might be more appropriate. This encourages longer-term planning and budgeting, mirroring the experience of receiving a paycheck as an adult. The key is consistency and ensuring that the allowance structure supports the lessons you want to teach.
Average allowance for kids and teens
Now for the million dollar question, how much allowance should you give to your kids? Here are some general guidelines:
- Ages 6 - 9: $5-$8 per week
- Ages 10-12: $9-$12 per week
- Ages 13-17: $12-$28 per week
Of course, these amounts can vary based on your family's financial situation and what expenses you expect the allowance to cover. The key is finding a balance between what you want your kid to learn and what expenses they need to manage.
Using Till Financial to automate allowance
If you're looking for a hassle-free way to manage your kid's allowance, consider using Till Financial. Till Financial is more than just an allowance app for kids - its a complete financial solution that helps families teach kids about money management.
Till lets you automate allowances on a schedule that works for you - weekly, bi-weekly, or monthly. The money gets sent straight to your kid's Till debit card.
Beyond allowance, Till lets kids set up savings goals, track their spending, and even complete chores for extra earnings - all within the Till Financial app. Parents are provided with valuable spending insights and controls, allowing you to monitor transactions and guide your child’s financial decisions.
The Till Financial debit card is not just the best allowance card for kids, but also a powerful tool for fostering financial literacy and independence.
