The average weekly allowance sits at $8 – down from $10 a year ago. Kids in NSW are the nation's top pocket money earners, with an average weekly allowance of $11, followed by kids in Queensland and Victoria, who earn an average $8 a week. Pocket money in South Australia and Western Australia averages $7 a week.
For kids aged between 4-6 years, the average amount per week is $7.17, while in the 7-9 years age bracket it drops slightly to $7.04. At 10-12 years, the average increases to $11.37, and from 13-15 it goes up again to $14.11. There's no right or wrong when it comes to choosing an amount.
Six-year-olds are getting £3.04 per week, while 10-year-olds are getting £4.90, and 16-year-olds are getting the highest amount, at £14.68. Separate findings from the NatWest Rooster Money report paint a similar picture, with the overall average amount standing just slightly lower, at £6.42.
If statistics are to be believed, four out of five Australian children aged nine to 13 receive an allowance between $5 and $19 a week. For kids between four and eight, it's less than $10, but for older kids, aged between 14 and 18, it could be up to $39.
Teens should save 20% and have an emergency fund
Ideally, teenagers, like adults, should be saving 20% of their income, whether that's earned or an allowance, or a combination of both.
Pocket money: children and teenagers. Pocket money can help children learn about money management and responsibility. Your decisions about pocket money will depend on your family circumstances and values. If you decide to give pocket money for chores, be clear about your expectations.
In my family, for example, we set a budget and go from there—and many families do the same. According to a November 2022 study, most parents are budgeting $220 for each child—with the highest budgets for 7 to 12-year-olds, though 28% of those surveyed are trying to keep it below $100.
While most etiquette experts agree that $20-$30 is perfectly reasonable for a child's birthday gift, you can spend up to $100 on the child of a close friend or relative, says Helen Holden, founder of Counting Candles, a website that helps parents plan birthday parties.
For 18 to 24 year old's
Most advisors recommend a savings target of 3 to 6 months of your regular expenses. Learn more about money by doing a financial fitness course or visiting Westpac's “Get serious about saving” page.
So how much allowance should you give? Levine recommends 50 cents to a dollar for every year of age, on a weekly basis. For example, a 10 year old would receive $5 to $10 per week. As your child grows, so should his responsibility for his own discretionary spending.
One in ten parents plan to stop giving pocket money to kids at age 15. More than half of eight to 15-year-olds expect to receive an allowance until their first job. A third of parents claim they worked much harder for their pocket money than their children.
When to stop giving pocket money? Just like when to start giving pocket money, deciding when to stop is up to you. Some parents give their kids pocket money until they're 18, but others stop at a younger age, maybe when kids get part-time jobs or start earning money from their own ventures.
– The reward should be proportionate to the chore and age-appropriate. Paying children lots of money for daily tasks is unreasonable, and for most families financially not possible. If you choose to pay children for chores, it should be reasonable for your families finances and the difficulty of the chore.
2. Determine an allowance amount by age. A good rule of thumb is 50 cents to $1 for every year of the child's age per week or twice a month. For example, a 13-year-old would receive $6.50 to $13 per week or $26 to $52 per month.
Absolutely, $10,000 is a good amount of savings for a 21 year old. The majority of the individuals and families in the world have not been able to amass $10,000 in their savings. At your age, you should probably consider taking at least 3/4 of those funds and investing the funds so you can make additional money faster.
How Much Should a 12-Year-Old Get for an Allowance? If you're using the $1 to $2 per-year-of-age rule, then a 12-year-old should get a weekly allowance of $12 to $24.
A common rule of thumb is to pay children between 50 cents to $1 per week for each year of their age. Following this rule, a 10-year-old's allowance would be between $5 and $10 per week, while a 16-year-old would get between $8 and $16 per week.
I usually recommend giving children a consistent allowance as soon as they are able to understand that money is necessary to purchase things they want–this usually happens around 4 or 5. Even if your child doesn't understand the value of different money pieces yet, it's never too early to start learning.