“How much should I give?” is one of the most common money questions parents ask. The honest answer is that it depends — on your budget, where you live, and, most importantly, what the allowance is supposed to cover.
Here’s a framework that works better than picking a number out of the air.
Step 1: Decide what the allowance is for
An allowance of $20 a week means something very different if it covers snacks versus if it covers snacks, clothes, gas, and entertainment.
Start by listing what your teen currently spends money on (or what you spend on their behalf):
- Food out with friends
- Entertainment (movies, games, events)
- Clothing beyond basics
- Transportation or gas
- Phone accessories, apps, or subscriptions
- Gifts for friends and family
Then decide which of these your teen will now manage. The allowance should roughly equal the cost of those categories — perhaps with a little extra to allow for saving.
Step 2: Use a rule of thumb as a starting point
If you want a quick benchmark, a commonly cited guideline is about $1 per week for each year of age — so roughly $13 a week for a 13-year-old and $17 for a 17-year-old.
Treat that as a starting point, not a rule. It’s a reasonable figure if the allowance covers mostly fun money. If you’re handing over clothing or transportation costs, the number will need to be higher.
Step 3: Adjust for your family’s reality
Every family’s budget is different, and that’s okay. A smaller allowance can teach just as much as a bigger one — as long as the responsibilities match the amount.
It’s also fine to be honest with your teen: “This is what we can afford for your spending money.” That’s a budgeting lesson in itself.
Weekly, biweekly, or monthly?
- Weekly works well for younger teens. Shorter gaps mean mistakes are recoverable quickly.
- Biweekly or monthly suits older teens and mirrors how many paychecks work. Stretching money over a month is a skill they’ll need.
A good approach is to start weekly and move to monthly as your teen gets more confident.
Should allowance be tied to chores?
Families disagree on this, and both approaches have merit:
- Chore-based: connects money with work. The risk is teens opting out of chores when they don’t need cash.
- Unconditional: treats allowance as a tool for learning money management, while chores are simply part of being in the family.
- Hybrid: a base allowance, plus the chance to earn extra for bigger jobs.
Many families find the hybrid model gives the best of both.
Rules that make any allowance work
- Pay on schedule. Consistency is what makes budgeting possible.
- No advances. If they run out, they wait. This is the lesson.
- Encourage a savings goal. Suggest setting aside a portion — even 10% — for something specific they want.
- Review once in a while. Revisit the amount each birthday or when responsibilities change.
Sample allowance setups
These are examples, not recommendations — adjust to your family.
Age 13 — fun money only
- Covers: snacks, entertainment, small gifts
- Paid: weekly
Age 15 — fun money + some clothing
- Covers: the above, plus non-essential clothing
- Paid: every two weeks
Age 17 — near-adult budget
- Covers: the above, plus gas, phone extras, and outings
- Paid: monthly
The bottom line
The right allowance isn’t about the number — it’s about matching money to responsibility. Decide what it covers, pick a reasonable amount, pay consistently, and let your teen manage it.
Track allowance without the spreadsheet. Clarius Money’s Family mode lets parents set up allowances and shared goals while teens manage their own budget. Get Clarius Money.
