Guides / Money skills for kids
Allowance basics: how much, when and for what
Pick a system, keep it consistent, and let kids make small mistakes.
An allowance gives kids real money to practice with. The amount matters less than doing it consistently and letting them make choices.
Three common systems
- Fixed allowance: a set amount each week, not tied to chores
- Chore-based: earn money for specific jobs beyond everyday chores
- Mixed: a small base allowance plus chances to earn more
How much?
Some families use a rule of thumb like a dollar a week for each year of age. Others decide by what the allowance has to cover. If kids will pay for some of their own things, such as treats or games, the allowance needs to be big enough for that.
Make it work
- Pay on the same day each week
- Agree what kids pay for themselves
- Let them spend unwisely sometimes; small mistakes are cheap lessons
- Don't rescue every overspend with an advance
General educational information. Costs and rules vary by family, school and state. Family Nickel Saver isn't paid by any bank, plan or brand.