Should I Give My Child an Allowance? 3 Approaches to Consider

There is no one right answer when it comes to giving kids an allowance. Different families use different systems, and each one can teach children something useful about money.

The bigger question is: What do you want your child to learn? Do you want them to practice managing money? Learn how money is earned? Or both?

Here are three common approaches parents can consider.

1. Regular Allowance

With a regular allowance, your child gets a set amount of money each week or month. For example, you might give your child $5 every week.

The main goal is to give kids money they can practice managing on their own. They can decide how much to spend, how much to save, and what is worth buying.

Pros: A regular allowance gives kids steady practice with money. They learn that money is limited, and if they spend all of it today, they may have to wait before buying something else. It also makes it easier for them to practice saving toward a bigger goal.

Cons: One downside is that kids may start to expect money simply because another week has passed. It also does not always teach a strong connection between work and earning money.

If you choose this approach, it helps to be clear about what the allowance is for and what your child is expected to pay for with it.

2. Basic Allowance Plus Ways to Earn More

Another option is to give your child a small regular allowance while also giving them opportunities to earn extra money. For example, your child might get $3 each week, but they can earn more by taking on an extra job.

This approach teaches two different lessons at the same time. The allowance gives kids regular practice managing money, while extra jobs teach them that they can earn more through work and effort.

Pros: Kids get regular experience with saving and spending, but they also have a way to earn additional money when they are saving for something special. This can be a nice middle ground for families that want to teach both money management and earning.

Cons: Parents need to be clear about the difference between a regular responsibility and a paid job. Otherwise, kids may start asking, “How much will you pay me?” every time you ask them to help.

That brings us to an important distinction.

Chores and Paid Jobs Are Not the Same Thing

In our family, we do not pay for regular chores. Things like cleaning up toys, putting clothes away, or helping with basic household tasks are part of being a family. Kids are part of the household, so they have responsibilities too.

Paid jobs are different. A paid job might be an extra task that goes beyond normal daily responsibilities, such as helping wash the car, organizing a storage area, pulling weeds, or helping with a bigger project.

This way, children can learn two separate lessons: chores teach responsibility, while paid jobs teach earning.

Other families may choose a different approach, and that is okay. The important thing is to be clear and consistent about what your family expects.

3. Paid Jobs Only

Some families skip allowance completely. Instead, children earn money by doing paid jobs.

Under this system, there is no automatic weekly payment. If your child wants to earn money, they can choose from age-appropriate jobs that you offer.

Pros: This creates a very clear connection between work and money. Kids learn that earning money usually requires effort, and it can encourage initiative. If they are saving for something, they may start looking for ways to earn more. You can even use this as an opportunity to talk about why different jobs might pay different amounts.

Cons: Younger kids may have fewer realistic jobs they can do, which means they may not always have money available to practice saving, spending, or budgeting. Parents may need to make an effort to offer earning opportunities often enough for their child to continue building money skills.

So, Should You Give Your Child an Allowance?

It depends on what works best for your family and what you want your child to learn.

If your main goal is to give your child regular practice managing money, a weekly or monthly allowance can work well. If you want to teach both managing and earning money, a small allowance plus paid jobs may be a good fit. If you want to build a strong connection between work and earning, you may prefer paid jobs only.

There is no perfect system. What matters most is that your child has opportunities to make real decisions with money:

• Should I buy this now or save for something bigger?
• How long will it take me to reach my goal?
• Is this purchase worth my money?
• How can I earn more?

Those small decisions are where many of the best money lessons happen.

A Simple Place to Start

If you are not sure which system to use, start small. Choose one approach and try it for a few weeks. Pay attention to how your child responds. Are they excited to save? Do they spend everything right away? Do they start asking questions about how they can earn more?

You can always adjust the system as your child grows. The goal is not to create the perfect allowance plan. It is to help kids learn how money works while the stakes are still small.