Aug 25, 2022
-An allowance is a set amount of money that parents give their kids on a recurring basis — such as every week, two weeks or month.
-Some families make allowances based on chores, which means parents pay their kids for doing chores like laundry, washing dishes or taking out the trash.
-In 2022 (YTD as of 07/29/22), the average weekly allowance for kids ages 5-19 was $12.76 for families who use Greenlight, the app that helps parents teach their kids financial responsibility.
An allowance is a recurring amount of money given to kids, typically from their parents or caregivers. Many families use allowance as a tool to introduce money topics at an early age. Parents can teach kids about money through real-life experiences by paying kids an allowance.
An allowance doesn’t have to be free spending money. It could serve as a way to teach budgeting, saving and financial responsibility. Especially when you have the right tools to help you — like Greenlight’s debit card and money app for kids and teens.
With Greenlight, parents decide how an allowance is paid out. Some parents will pay an allowance based on the completion of household chores. Others will pay allowance when they feel their child is ready to manage their own money.
Regardless of how it’s paid out, Greenlight helps kids learn to save, give and invest. Greenlight also helps parents teach them to manage their own money, build smart money habits and meet all their Savings Goals.
Now that you know where to get started, you might be wondering how much allowance to give your kids. That depends on your family situation — or if you’re paying allowance for a specific purpose, like completing household duties or chores.
A rule of thumb to follow is to give your kid $1 per week for each year of their age. If you have a 7-year-old, their allowance would total $7 per week. A 16-year-old would receive more, at $16 per week.
According to data collected in 2022 (YTD as of 7/29/2022), Greenlight found that the average weekly allowance for 5-year-olds was $5.98. Meanwhile, the average weekly allowance for 13-year-olds was $11.78. Lastly, at the top end, the average weekly allowance for 17-year-olds was $19.80.
Below is the average weekly amount paid by parents to their kids, categorized by age.
5 years old
6 years old
7 years old
8 years old
9 years old
10 years old
11 years old
12 years old
13 years old
14 years old
15 years old
16 years old
17 years old
18 years old
19 years old
While the numbers shown above are an average of all Greenlight kids that receive an allowance, they seem to be on par with the rule of thumb mentioned earlier. Six-year-olds receive a little over $6 per week at $6.50, and 15-year-olds receive a little under $15 per week at $14.89.
So where does all of the money go? Greenlight kids have the option to spend their money with a custom debit card. When kids spend, they get cash back which automatically goes to Savings. They can also save any extra money — or even learn to invest it in the stock market!
In fact, Greenlight kids have already saved more than $225 million collectively. They’ve also invested over $10 million, collectively. Woah! And for the generous kids, Greenlight also offers a ‘Give with Greenlight’ feature where kids can donate to the charities of their choice.
Need some chores inspiration to get started? Below is a mix of a few of the most popular chores for Greenlight families — along with a few others to help you get started:
Clean your bedroom
Take care of a pet
Take out the trash
Wash the dishes
Read a book
Practice an instrument
Train or practice a sport
Wash the car
Study for a test
Greenlight tip: Don’t be afraid to get creative with chores. We’ve seen some innovative options ranging from “Make tacos” to “Practice magic.”
Connecting chores and allowance can go a long way. Just like Greenlight kids, your kids will learn the importance of saving and investing early and often. They’ll also learn about budgeting and how to allocate their money towards wants and needs. Lastly, if your teens check off chores for dollars, they’ll learn that working hard goes a long way. And when the time comes for a new job, they’ll be ready to take anything on.
Are chores separate in your family? That’s okay — at Greenlight you don’t have to connect allowance to chores. Just choose a day and decide how and when you’d like their payout to hit.
You can even set it on autopilot for an effortless and consistent routine. Pay them a flat rate and pause at any time. By giving kids the opportunity to handle money on their own, they can practice for a bright financial future.
Now, if you’re ready to onboard your family and try our comprehensive allowance app for kids — sign up for Greenlight today and get one month, on us.
After your one-month trial, plans start at just $4.99/month for the whole family. Includes up to five kids.
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