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.
As a general guide, 50 cents to $1 per age of child is a sensible amount.
Pocket money has a wealth of benefits for both the child and the family. In fact, kids who get pocket money are more likely to develop strong financial planning skills, and are less likely to get in debt as adults.
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.
Younger children will often spend their money on things like stickers, small toys, or sweets. Older children and young teenagers are more likely to want to save up for clothes, online games, apps, books, magazines, and outings with friends. They may also save money for bigger items like a new bike or games console.
How to Set an Allowance for Kids. A commonly used rule of thumb for paying an allowance is to pay children $1 to $2 per week for each year of their age. Following this rule, a 10-year-old would receive $10 to $20 per week, while a 16-year-old would get $16 to $32 per week.
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.
The average weekly allowance sits at just $8 – down from $10 a year ago – with a total of around $39 million paid to Aussie children this year. Kids in New South Wales are the nation's top earners, with an average weekly allowance of $11, followed by Queensland at $8 and Western Australia at $7.
Average allowance for kids and teens — in 2022
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.
“A good rule to live by is to save 10 percent of what you earn, and have at least three months' worth of living expenses saved up in case of an emergency.” Once your teen has a steady job, help them set up a savings program so that at least 10 percent of earnings goes directly into their savings account.
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.
A Finder study reveals 11 per cent of Aussie families have docked* their children's allowance as they struggle with the rising cost of living. The average weekly allowance sits at $8 – down from $10 a year ago.
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.
Budget for at least $100 when it comes to gifts for your own children. For your own child, a $100 budget allows for a great blend of toys, books, and clothing, says Jennifer Porter, a Seattle-based etiquette coach and party planner.
Some 65% of the children surveyed said that they received pocket money, with children aged between 15-17 years receiving an average of Rs 350 per week and those between 12-15 years getting about Rs 200 per week.
You can choose to give away any amount and as many gifts as you like. If the total value of your gifts is more than the value of the gifting free area, your payment may be affected.
There's no limit on how much money you can give or receive as a gift! However, there are some occasions where tax may be payable, or capital gains tax (CGT) may apply. For example, when gifting property, shares or crypto assets.
$10,000 a month in AUD would mean that someone was earning more than twice the median income, so they would be quite well off.
For co-workers, casual friends and your children's teachers, stay in the $10 to $20 range. Gift cards for close friends and family members can range from $25 to $100.
For school-aged kids, 4 to 5 gifts are enough. You can gift them their favorite toy, a lovely Christmas dress, a pair of Christmas shoes, and some storybooks to read. For teenagers, the quantity of gifts doesn't matter. You should select at least three favorite items of your teenager and pack them nicely.
No one can deny the joy children experience when they open a gift on Christmas Day. But money is always a welcome present too, and in these financially uncertain times, investing in a child's future may seem more valuable than buying them the season's hottest toy.
Giving a Raise: Age 10 or 11
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. Keep track of what you spend on him for a couple of weeks.
It's up to the parents to decide if they want to give their children an allowance for helping out around the house. If you do decide to pay your children for doing chores, the amount of money they get should be proportionate to the chore and age-appropriate.
Traditionally, kids get an allowance of $1 to $2 per week for each year in age. So, if you have an 8 year old and a 12 year old, you might consider paying them $8 and $12 per week, respectively.