What age to give pocket money? What parents should know
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Pocket money can be so much more than a surprise dollar bill in the laundry. For kids, pocket money — a small amount available for personal spending — is often their first real-life experience with financial responsibility.
Teaching kids about pocket money can be an effective way to help them gain money management skills from an early age. It encourages financial independence and empowers kids to make their own decisions about how to spend their allowance or pocket money. (And understand the consequences of spending that money.)
It's also a valuable tool for parents considering how and when to talk to their kids about money. Here are some top pocket money approaches for kids of different ages.
What's the right age to start pocket money?
When to give your child pocket money depends more on their maturity than age. Are they ready to make responsible choices when buying candy, snacks, small toys, or other small purchases? Most experts suggest starting between 5 and 7. But you can use milestones like starting school or taking an interest in buying things for themselves as signs they're ready.
How much pocket money is appropriate by age?
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Before kids are working and earning their own money, giving an allowance is one of the most common ways. Based on Greenlight's research, these are the average allowances by age for kids ages 5-19.
Weekly allowance by age 2024 - Greenlight kids & teens
Age | Allowance |
5 years old | $6.05 |
6 years old | $6.22 |
7 years old | $6.60 |
8 years old | $7.12 |
9 years old | $7.77 |
10 years old | $8.44 |
11 years old | $9.29 |
12 years old | $10.32 |
13 years old | $11.57 |
14 years old | $13.10 |
15 years old | $15.14 |
16 years old | $17.57 |
17 years old | $20.87 |
18 years old | $24.43 |
19 years old | $30.14 |
While age is the biggest factor in allowances, you might also consider factors like your location, family values, and income. An allowance gives kids pocket money to manage and save. With time and guidance, it can help kids learn healthy financial basics, like spending vs. saving their pocket money.
Allowance vs. chores: Should kids earn pocket money?
Some parents give their kids an allowance "no strings attached." Others offer it in exchange for specific tasks or chores. Whether kids must earn their pocket money depends on your unique family and circumstances. Common strategies include:
Fixed allowance: Regular weekly payments can help kids understand longer-term budgeting and saving.
Chore-based: You may opt to give your kids an allowance for their chores, incentivizing effort and responsibility for helping to manage the house.
Hybrid approaches: You could do a mix of both, or offer your child chances to earn even more money through additional chores or special projects. Walking the dog, shoveling snow, and other jobs that go above the standard chore list may warrant higher amounts.
Make pocket money a learning tool
Regardless of whether kids "earn" it or not, pocket money can be a great teacher. Coins and bills are excellent visual aids to help younger kids understand basic math concepts. As kids mature, you can use pocket money for more sophisticated ideas. Kids earning money as 10-year-olds are usually old enough to connect the value of hard work with earning an allowance.
Before giving pocket money, set clear expectations around saving, spending, and sharing. As they grow, help them reflect on how they spend and adjust their goals accordingly.
Then, make it stick! Use a chores and allowance app for kids like Greenlight to automate the process. Establish regular responsibilities or one-time tasks. Tie them to allowance — or not! You can put it all on autopilot or approve tasks as you go.
Develop mental money lessons by age group
As your kids grow, you can evolve how you talk about money and your expectations. Some good benchmarks include:
Ages 5-7: Introduce kids to coins and financial choices, like the consequences of spending their money as soon as they get it.
Ages 8-10: Begin discussing saving and the value of planning ahead, whether it's to save for something special or the future.
Ages 11-13: Discuss how budgeting works and how to differentiate between wants and needs. Introduce giving back.
Teens: As kids get into the workforce, discuss how to manage their income, balance a budget, and plan for larger expenses and responsibilities. Start learning about investing** and growing wealth.
Common mistakes (and how to avoid them)
1. Assuming your kids know the basics. Engage in conversations even when you think they may be obvious, like where money comes from or where it goes after it's spent.
2. Making money matters "adults only." Kids learn a lot through exposure and observation. Talk about money as a family.
3. Giving too much freedom too soon. Ensure your kids are spending responsibly and discuss their developing habits with them. Set clear, consistent expectations (and potential consequences) for how you expect them to use the money.
4. Sleeping on tech tools. We don't mean more screentime. There are many financial education tools, including Greenlight (the #1 family safety and money app), that make learning about money easy and fun. You can also turn video games into lessons with cool money games like LevelUp™.
Start small, grow confidently: Next steps for parents
Set clear expectations from the outset and start with small amounts of money.
Try linking chores to allowance to earn pocket money.
Consider a safety-first debit card for kids with parent controls to introduce basic money management safely.
As kids grow, entrust them with slightly larger amounts.
Gradually introduce them to saving, budgeting, and digital banking.
How Greenlight makes pocket money smarter and stress-free
Giving your kids pocket money is a great way to introduce them to financial responsibility and money management. Monitoring their spending and helping them stay on track to meet their goals and budgets provides the support they need to develop strong, responsible spending habits for the future.
With the Greenlight app, you can monitor your kids' spending, track habits, and get help teaching them about the sense of responsibility. Make pocket money lessons easy: Try Greenlight. One month, risk-free.†
**Available with Greenlight Max, Infinity, and Family Shield plans.
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