According to a T. Rowe Price survey, 59% of parents give their kids an allowance that they have to earn. Most of these parents said they want to teach their kids the meaning of working for money and how to manage money. Let’s take a look at some strategies for giving an allowance to kids, including how much children receive on average at different ages. We’ll also explain the difference between an allowance and a job, and review financial lessons kids can learn from managing their own money.

The Average Allowance for Kids Varies by Age

The average weekly allowance for kids is $9.80, however average allowances vary by age, according to RoosterMoney. For example, a 14-year-old earns $15.70 on average, whereas a 4-year-old receives $5.12.  Here’s a breakdown of the weekly allowance ranges for kids ages 4 to 14.

4-year-olds – $5.125-year-olds – $5.466-year-olds – $5.997-year-olds – $8.058-year-olds – $8.199-year-olds – $9.1810-year-olds – $9.8511-year-olds – $11.1512-year-olds – $13.1113-year-olds – $14.8014-year-olds – $15.70

Allowance rates also depend on what the money is being earned for. While the average birthday gift is $50.36, kids earn an average of $7.48 for mowing the lawn, $4.48 for raking leaves, and $1.94 for washing windows.

Deciding What To Give Kids For Allowance

What you give your kids for allowance should depend on several factors, including their age and what you expect them to do with the money.  “If your son or daughter is younger, you can give them their age in dollars each week. So a 5-year-old, for example, would get $5,” Mike Hunsberger, owner of Next Mission Financial Planning told The Balance in an email. “As they get older, you might want to raise this amount, especially if you expect them to pay for more things with the funds,” Hunsberger said. “For a teenager, this could be $25 per week or more if you want them to buy their own clothes or pay for most of their activities.” 

Allowance vs. Jobs for Kids

Kids can earn money of their own from receiving an allowance and having a job, but they are different sources of income with different lessons. An allowance is an expected payment, whether for performing chores or not. A job is tied to a specific task. “An allowance is money your child receives on a regular basis unless you remove it for poor behavior or another reason,” Rachel Fink, founder of Parenting Pod, said in an email. “A job, on the other hand, is a specific task they must complete in return for a specific amount of money or reward.” A regular allowance can promote financial independence. However, if most of your child’s necessary expenses are covered, paying them for a job might make more sense. Consider an hourly rate for extra work, such as one based on their age.  “The transition from earning money with an allowance to a job can happen whenever you feel your child is ready,” Fink said. “For some children, it may be as young as age 5 or 6. For others, the ability to do more difficult chores and understand responsibility might be an indication that they’re ready for a larger role in contributing to the family income.”

Tips for Giving the Allowance

Once you decide how much allowance your kids will receive, you should define which basic household duties they’ll need to perform to receive it.  “You may want to create a visual reminder and post it in a common area of your house, like the refrigerator,” Amanda Monschein, Financial Advisor at Stratus Wealth Advisors told The Balance in an email. For example, the reminder may include a note to:

Make the bed each morningKeep the floor clear of dirty clothesUnpack the backpack as soon as you come home from schoolPut dishes in the sink after each meal

You may want to meet with your son or daughter every month to discuss whether changes are needed. With an established communication system, kids can take ownership of their household duties without constant “nagging” from parents. 

Help Kids Create a Plan for Their Allowance

Once you’ve decided how much allowance your kids will receive, guide them in using it responsibly. For example, you may want to encourage them to earmark a certain percentage for spending, a certain percentage for saving, and another for charitable giving. Having these guidelines can help them use their allowance purposefully so they’re not simply blowing it all. And opening a savings account for them at an early age can help them get into the savings habit, which can help them as they get older and begin planning for things like buying a home or saving for retirement. Finally, don’t be afraid to let kids make mistakes with their allowance. Turn a poor spending decision into a teachable moment so your kids can learn how to avoid money mistakes in the future.