How Much Pocket Money Should Kids Get?

How much pocket money to give children is one of those questions that has no single right answer, but there are useful principles that help most families land on something that works. Here is a practical guide to finding the right amount for your child’s age and your family’s situation.

The General Principle: Enough to Make Real Decisions

The point of pocket money is to give children practice making real financial decisions with real money. Too little and there is nothing meaningful to manage — the decisions are trivial. Too much and the child never experiences the constraint that makes financial decision-making genuinely educational.

The sweet spot is an amount that gives them something to allocate across their three categories (spend, save, give), leaves them with real choices to make, and creates real consequences when they spend it all too quickly.

A Rough Age Guide

A commonly used guide is fifty cents to one dollar per year of age per week. A six-year-old receives $3-6 per week. A nine-year-old receives $4.50-9 per week. A twelve-year-old receives $6-12 per week.

These are starting points, not rules. What matters more than the specific amount is that it is consistent, that the child manages it themselves, and that the natural consequences of decisions are allowed to play out.

What Pocket Money Should and Should Not Cover

This is worth being explicit about before you start. Does pocket money cover treats and snacks they want? Small toys and entertainment? Gifts for friends? Knowing what falls within pocket money and what the parent still covers removes ambiguity and prevents constant renegotiation.

A common approach: pocket money covers personal wants — things the child wants for themselves. Parents cover needs and socially expected costs — school supplies, gifts for family birthdays, essential clothing. This distinction teaches children to budget for their own desires while not burdening them with costs that are appropriately a parent’s responsibility.

Should Pocket Money Be Tied to Chores?

This is the most frequently debated pocket money question. The middle path that works well for most families: some contributions to the household are expected of all family members regardless of pocket money — these are the baseline of being part of the family. Additional tasks above and beyond can earn extra. This keeps the distinction clear between contributing to the household and earning income.

Consistency Matters More Than Amount

An irregular pocket money system — sometimes given, sometimes forgotten, sometimes given more when the child asks — teaches nothing useful about managing a regular income. The same day, the same amount, every week. That reliability is what gives the child something to plan with.

Your Practical Takeaway

If pocket money is not already happening, start this week with a simple amount for your child’s age. Set the day. Explain the three categories. Hand it over and let them manage it. Review in a month and adjust if the amount is genuinely too little or too much to work with.

For personalised guidance on pocket money for your child’s specific age and situation, try Cleo free at lifereadyparenting.com/ask-cleo.