The "$1 per year of age per week" rule has been around for decades. But is it still relevant? Here's what child development and financial experts now recommend.
The Problem with Simple Rules
Every family is different. Cost of living varies wildly. A child in Finland has different needs than one in California. That's why the best approach considers multiple factors.
Recommended Allowance by Age
Ages 4-6: Learning the Basics
Suggested range: €1-3 / $1-4 per week
At this age, allowance is more about learning to count money and make simple choices than accumulating wealth. Keep amounts small enough that mistakes aren't costly.
Ages 7-9: Building Habits
Suggested range: €3-6 / $4-8 per week
Kids can now save for slightly bigger items. This is the perfect age to introduce savings goals and delayed gratification.
Ages 10-12: Increasing Responsibility
Suggested range: €5-10 / $6-12 per week
Pre-teens are ready for more complex decisions. Consider requiring them to pay for some of their own entertainment or treats.
Ages 13+: Preparing for Independence
Suggested range: €8-20 / $10-25 per week
Teens should be managing larger amounts and covering more of their own expenses. This is practice for adulthood.
Factors to Consider
- Local cost of living - What can they actually buy?
- Family budget - It needs to be sustainable
- What it covers - Just fun money, or also school supplies?
- Earning opportunities - Base + chore earnings is often best
Automate Age-Based Allowance
ChoreBucks automatically adjusts allowance as kids grow. Set it once, and the app handles increases on birthdays.
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