When to start and stop allowances for your kids

Figuring out when to start or stop giving your child an allowance isn’t always straightforward. Some parents start as soon as their kids can count coins, while others wait until middle school. And when is the right time to stop? High school graduation? First job?

There’s no one-size-fits-all answer. But there are age-appropriate guidelines and helpful cues to guide your decision. In this article, we’ll walk through key stages to help you make the call.

You can make all of this easier to track by automating it with Greenlight. Create a chores checklist, assign chores, automate allowance payments, and help them manage their money.

When to start giving an allowance

Most experts recommend starting an allowance when your child begins to understand the concept of money. That typically occurs between the ages of 5 and 7. At this age, kids are curious about how money works and ready to practice counting, saving, and spending.

What to look for:

• Your child asks questions like "How much does that cost?"

• They start wanting things that require saving up.

• They can count and understand basic math.

Starting early gives you a chance to set good habits from the beginning. Many families start with $1 per week for each year of age (e.g., $6 for a 6-year-old), but the exact amount is up to you.

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Should allowances be tied to chores?

There’s no universal rule here, just what works best for your family dynamic. But the choices you make can influence how your child perceives money, responsibility, and effort.

Option 1: Allowance that’s separate from chores

Many families don’t offer allowance for chores; chores are part of the household duties.

With this approach, allowance serves as a tool for teaching financial literacy rather than earning. Your child gets a set amount to manage independently, which helps them build money skills like budgeting, saving, and spending wisely. 

Pros:

• Reinforces intrinsic motivation for chores

• Helps kids learn to manage money consistently

Cons:

• Kids may not associate money with effort or work

Option 2: Allowance earned through chores

Here, kids earn their allowance by completing household tasks. This approach sends the message that money is something you earn through hard work, promoting accountability and effective time management.

Pros:

• Builds a strong work-reward connection

• Encourages responsibility

Cons:

• Can lead to negotiating every task

• If they skip chores, they miss out on financial learning opportunities

Some families even use a hybrid approach: a base allowance for learning money management, along with extra earnings from optional jobs. Greenlight’s Chores and Allowance feature is flexible, so you can work with any allowance style you choose.

Adjusting allowance as your child grows

As your child matures, their needs, interests, and understanding of money change. So should your approach to allowances.

Ages 5–9: Start small and simple

• Use physical cash or a visual allowance chart.

• Focus on short-term goals, such as toys or treats.

• Teach basic saving and spending decisions.

• Consider a fixed weekly amount to practice consistency.

Ages 10–13: Introduce digital money management

• Use digital tools, such as an app with a debit card for kids, to categorize your money into three main areas: spend, save, and give.

• Start budgeting for school events or gifts for friends.

• Talk about delayed gratification and saving toward larger goals.

• Increase allowance slightly as their responsibilities grow.

Ages 14–17: Prepare for financial independence

• Encourage budgeting for real expenses, such as transportation, outings, or phone bills.

• Set up systems to track income from jobs or side gigs.

• Introduce concepts like taxes, emergency funds, and savings goals.

• Shift allowance from a set amount to a flexible budget or stipend.

When to stop giving an allowance

There’s no specific age when allowances should end. Instead, look for signs your teen is ready to take the wheel.

1. They have a steady source of income

If your teen earns money through a job, summer gig, or freelance work, consider reducing or ending allowance. 

2. They demonstrate financial responsibility

Is your teen planning and sticking to a budget? Do they save for larger purchases without reminders? These are clear signs they’re ready to manage money without a weekly allowance.

3. You want to teach self-sufficiency before adulthood

Phasing out allowance during the later high school years can help teens adjust before they fly the coop. You can set a timeline together, maybe ending the allowance after senior year or once they’ve achieved a savings goal.

As you consider when to stop giving allowance, you can also empower kids to start managing their own income and money. Tools like Greenlight, the #1 family money and safety app, can help kids and teens build strong money habits while you maintain parental oversight.

Allowance can be a great first step in developing financial literacy until kids are ready to start earning and managing their own money. 

Teach the value of hard work. Assign chores and allowances, track progress, and help kids learn to earn and manage money with Greenlight. Try Greenlight, one month, risk-free.†

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.