How Much Pocket Money Should Kids Get?
Short answer
Teens aged 13 to 17 typically start with a weekly pocket money amount ranging from $10 to $20, adjusted to fit family budgets and responsibilities. This allowance teaches budgeting, saving, and spending skills while encouraging responsibility. The right amount evolves with teens’ needs, chores completed, and money management abilities.
What is Pocket Money and Why Should Teens Have It?
Pocket money, also called allowance, is a fixed amount of money given regularly to kids to spend or save as they choose. For teens, it goes beyond just spending cash—it’s a practical tool to practice real-world money skills like budgeting, saving for goals, and making spending decisions. Unlike money earned from jobs, pocket money can be used to learn financial responsibility in a low-risk way. To start, talk with your parents or guardians about what expenses pocket money should cover, such as snacks, entertainment, or personal items. Understanding the purpose of pocket money helps teens take ownership of managing their finances and prepares them for adult money habits.
How Much Pocket Money Should Teens Get to Start?
For teens between 13 and 17, a starting weekly allowance of $10 to $20 is common. This range provides enough money for small purchases while encouraging budgeting. For example, if you get $15 a week, you might spend $5 on snacks, save $7 for something bigger, and keep $3 for gifts or emergencies. Families have different budgets, so check what fits best with your household’s finances. If you run out quickly and regularly ask for more, it might mean your allowance is too low or your budgeting needs work. Conversely, if you have a lot leftover, consider if you might want to save more or set higher goals. Starting small and adjusting is better than overwhelming teens with too much money upfront.
Should Pocket Money Depend on Chores?
Many families link allowance to chores as a way to teach responsibility and work ethic. For example, chores suitable for teens might include washing dishes, mowing the lawn, or taking out the trash. One method is to split pocket money into two parts: a fixed base allowance and an extra amount earned by completing chores. For instance:
| Chore | Payment per Task |
|---|---|
| Dishwashing | $2 |
| Lawn mowing | $5 |
| Taking out trash | $1 |
| Laundry folding | $3 |
This approach helps separate “earning” money from “managing” money. Start by making a chore list with clear payments and deadlines. If chores are done consistently and teens manage money well, the system is working. If chores are ignored or money is mismanaged, hold a family talk to adjust chores or money amounts. Remember, chores teach skills beyond money, such as time management and cooperation.
How Can Teens Learn to Budget Their Pocket Money?
Budgeting is a key skill to develop with pocket money. A simple way to start is dividing your allowance into three parts: spending, saving, and giving. For example, if you receive $15 weekly, you might allocate:
- $7 for spending on personal treats or outings
- $5 for saving toward bigger goals
- $3 for giving to charity, gifts, or unexpected expenses
Use a notebook, spreadsheet, or budgeting app to track how you spend and save. Each week, review your spending: Did you stay within your spending money? Did you save as planned? If you spent too much, think about what you could do differently next week. Being honest with yourself helps build good habits. Parents can offer guidance by asking questions like, “What did you buy this week?” or “Are you close to your savings goal?” This ongoing budgeting practice builds financial confidence and control.
Is It Helpful to Give Teens Options to Earn Extra Money?
Allowing teens to earn extra money beyond their pocket money encourages initiative and teaches the link between work and reward. Extra earnings can come from additional chores, babysitting younger siblings, pet sitting, or helping neighbors. It’s important to set clear expectations and payment rates. For example, mowing a neighbor’s lawn might earn you $10, while walking a dog could pay $5 per visit. Keep track of extra earnings separately from your pocket money to see how you manage both sources. If extra money motivates you to save for special goals, it’s a sign this system is effective. However, if extra work causes stress or conflicts with school, talk to your family about balancing tasks.
How Can Teens Handle Requests for More Pocket Money?
If you feel your allowance isn’t enough, start by making a list of your typical weekly expenses and any special purchases you want. Before asking for more money, review how you’re spending your current allowance. Here’s a helpful script to use when talking to parents:
“I’ve been thinking about my expenses, and I notice I often run out of my pocket money before the week ends. Can we review my spending and see if it’s possible to adjust my allowance or find ways I can earn extra money?”
This approach shows responsibility and willingness to manage money better. Parents may ask to see your budget or savings goals. If you manage your money well, they might increase your allowance as a reward. If not, they could suggest alternative ways to earn money or help you improve budgeting skills.
What Role Does Saving Play in Pocket Money?
Saving teaches patience and goal-setting. Encourage setting both short-term and long-term savings goals. For example, short-term goals might be saving for a new book or game, while long-term goals could include saving for a laptop or college expenses. Start by setting aside at least 20-30% of your pocket money for saving. Use clear containers like labeled jars or a separate savings account to keep your saved money visible. Track your progress weekly or monthly, and celebrate milestones like reaching half your goal. This helps keep motivation high. Saving also prepares teens for unexpected expenses and future financial independence.
How Can Parents and Teens Talk Openly About Money?
Open money conversations build trust and understanding. Set regular times to discuss money matters, like once a month during a family dinner. Parents can share how money is managed at home, including bills and budgeting, to give teens real-life context. Teens can share their spending habits, savings goals, and challenges. Here’s a list of conversation starters:
- “Can you help me understand how our family budget works?”
- “I’m trying to save for something special. What do you think is a good way to reach my goal?”
- “How do we decide how much pocket money I get?”
These talks help teens feel involved and comfortable asking for advice or help. They also promote financial literacy beyond pocket money, preparing teens for managing bigger expenses in the future.
How to Handle Pocket Money When Teens Have Jobs or Gifts?
If you have a part-time job or receive money as gifts, coordinate pocket money with these income sources. Discuss with your parents whether your allowance should decrease if you earn regularly or if it should stay the same to continue teaching budgeting. Keep track of all your income and expenses in one place to get a full picture of your finances. This practice teaches managing multiple income streams and prioritizing spending. For example, if you earn $50 a week from a job and get $15 pocket money, decide how much to save, spend, or give from each source. Regular reviews with parents can help adjust money management strategies as your income changes.
How to Tell If Your Pocket Money Plan Is Working?
You can tell your pocket money system is effective if you:
- Stay within your budget most weeks
- Save regularly without feeling forced
- Complete chores or tasks reliably if money is linked to work
- Can explain how you spend and save your money
- Feel confident making small financial decisions
If you run out of money too often or find yourself stressed about money, it’s a sign to revisit your budget or allowance amount. Talk openly with your parents about what’s working and what isn’t. Adjusting the plan as you grow helps maintain good habits and reduces money-related conflicts.
Frequently asked questions
What expenses should pocket money cover for teens?
Pocket money can cover personal expenses like snacks, entertainment, gifts, and small outings. It helps teens manage day-to-day spending without involving parents for every purchase.
Can pocket money be given monthly instead of weekly?
Yes, some families prefer monthly allowances. Weekly money offers more frequent budgeting practice, but monthly can work well if it suits family routines better.
How can teens avoid spending all pocket money too quickly?
Creating a budget, tracking expenses, and setting spending limits help prevent overspending. Saving for bigger goals also encourages patience.
Should teens keep all pocket money as cash?
Not necessarily. Using a bank account or digital money tools can teach more about modern money management and security.
Is it okay to adjust pocket money as teens get older?
Yes, it’s normal to increase pocket money or change rules as teens mature and take on more financial responsibilities.
How do teens learn about taxes if their pocket money is not from a job?
Pocket money itself isn’t taxed, but it is a chance to learn about budgeting for taxes through discussions or extra lessons, preparing teens for future work income.