How much pocket money should children get at each age?

There is no official Australian rate for pocket money. A useful amount is one your family can afford consistently and your child can make real choices with. For many families, that starts with a few dollars a week in primary school and grows gradually as the child takes responsibility for more of their own spending.

The amount matters less than the agreement around it. A child should know when the money arrives, what they are expected to pay for, whether any of it is linked to jobs, and what happens when it runs out.

A practical age guide

These ranges are a starting point, not a rule.

AgeA workable starting rangeWhat they might practise5-7$2-$4 a weekCounting, choosing one small item, saving coins8-10$4-$8 a weekSaving towards a goal, comparing prices, waiting11-13$8-$15 a weekPlanning across a week, small social spending, tracking a balance14-15$15-$25 a weekTransport, snacks or entertainment within agreed limits16-18A negotiated allowanceManaging selected recurring costs alongside any job income

The best test is whether the amount creates decisions. If a seven-year-old can buy everything they want without waiting, the lesson disappears. If a teenager is expected to cover transport, lunch and social plans from an amount that cannot reasonably cover them, the system becomes a source of conflict rather than practice.

What should pocket money cover?

Start by separating family essentials from personal choices. Parents and carers remain responsible for essentials such as ordinary food, housing, school requirements and necessary clothing. Pocket money can cover optional treats, small toys, game purchases or saving towards something larger.

Older teenagers can gradually take on selected costs. You might agree that you will continue to pay for essential transport and a basic phone plan, while they cover extra data, takeaway food or entertainment. Write the boundary down. Most pocket-money arguments are really disagreements about what the money was meant to cover.

Should it be tied to chores?

Both approaches can work. Some families treat everyday jobs as part of belonging to the household and give pocket money separately. Others pay for a defined list of jobs. A useful middle ground is to keep basic responsibilities unpaid, then offer extra money for occasional work such as washing the car or helping with a larger garden job.

This teaches two different lessons. Everyone contributes to a household, and extra effort can earn extra money.

Avoid changing the price of a job after it is done. Agree on the task, the standard and the amount first. If the job is not completed, the child should know whether they can try again or whether the offer has passed.

Weekly or monthly?

Weekly usually suits younger children because the feedback loop is short. They can spend too quickly, experience the wait, and try again next week. Monthly allowances can work for older teenagers who are ready to plan across a longer period.

Do not rescue every early mistake. If the money was spent on Monday, waiting until the next agreed payment is part of the lesson. You can still talk through what happened without shame or a lecture.

What if your budget is tight?

Pocket money does not have to be large, and it does not have to be cash. You can create meaningful choices with a small regular amount, tokens for agreed family treats, or responsibility for planning part of a real household budget.

A child can compare two cereal prices, plan a low-cost afternoon, or help decide how to use $10 for a family snack. Those moments teach the same core skills: money is limited, choices have trade-offs, and waiting can make a bigger choice possible.

A simple way to start

Choose four things together:

1. The amount.
2. The payment day.
3. What the child pays for.
4. What happens when it runs out.

Keep the first agreement for a month, then review it. Increase the amount only when the responsibilities around it increase, not simply because the child asks more often.

Sources

• Moneysmart: Teaching kids about money
• Moneysmart: Teaching consumer and financial literacy

This article provides general information for parents and carers. Every family and child is different.