How Much Allowance Should You Give Your Kids

Ever found yourself in the store aisle, pondering the price of a toy for your little one, and suddenly a thought pops into your head: “Should I be giving them an allowance? And if so, how much?” You’re not alone! It’s a question that many Canadian parents grapple with, a delightful blend of financial planning, developmental psychology, and a dash of wishing for a magic formula. The good news is, you’re on the right track just by asking! Providing children with an allowance is far more than just handing over a few bucks; it’s a foundational step in teaching financial literacy, responsibility, and the value of a dollar. And thanks to some insightful data, we now have a clearer picture of what fellow parents across Canada are doing, along with some helpful guidelines to get you started.

The Canadian Allowance Landscape: What Do the Numbers Say?

Let’s dive into the fascinating world of parental financial strategies. A 2024 Mydoh study shed some light on allowance practices in Canada, revealing that approximately 47% of Canadian parents currently give their children an allowance. This means nearly half of families are actively using this tool to help their kids understand money, but it also means a significant portion are taking a different approach – and both are perfectly valid depending on family values and circumstances.

What’s particularly interesting is how much these amounts can vary across the country. If you’ve ever felt like your neighbor’s kids have a different financial reality, you might not be far off! For instance, the study found that children in British Columbia receive an average of $17.80 per week, while their counterparts in Ontario enjoy a slightly higher average of $23.90 per week. These provincial differences likely reflect various factors, from the cost of living and regional economic conditions to differing cultural norms around children’s financial independence. It’s a good reminder that there’s no single “Canadian standard,” but rather a spectrum of practices.

To add another layer of context, the 2024 data from Greenlight, another popular financial education platform, indicates that the average weekly allowance for kids aged 5-19 across families using their service was $12.98. This figure provides a broader North American benchmark, showing that the Canadian numbers, while varying, generally fit within a similar range of what kids are receiving overall.

So, while the numbers offer a snapshot of what’s happening, they also highlight the beautiful diversity in how families approach this topic. There’s no right or wrong answer when it comes to if you give an allowance, but if you do, the next logical question is…

Finding the Sweet Spot: How Much is Enough?

This is often the million-dollar question – or perhaps, the ten-dollar question! Deciding on the right allowance amount can feel daunting. You want it to be meaningful enough to teach responsibility, but not so much that it loses its value or over-stretches the family budget. Thankfully, there are helpful recommendations and guidelines to steer you in the right direction.

For tweens, specifically those aged 10 to 12 years old, Mydoh recommends a range of $5 to $12 a week. This range is often considered ideal because children in this age group are developing more complex understanding of money, delayed gratification, and planning for future purchases. A smaller amount may not feel impactful, while a much larger amount might be overwhelming or remove the need to save.

Another widely accepted guideline for determining allowance is to provide 50 cents to $1 per year of the child’s age per week. Let’s break this down:

• A 10-year-old might receive $5 to $10 weekly.
• An 11-year-old could get $5.50 to $11 weekly.
• A 12-year-old would be in the range of $6 to $12 weekly.

Notice how perfectly this “age-based rule” aligns with Mydoh’s recommendation for tweens! It suggests a natural progression, allowing the allowance to grow as your child does, reflecting their increasing needs, understanding, and capacity for responsibility. The Greenlight average of $12.98 for kids 5-19 also sits comfortably within the upper end of these guidelines, showing a consistent philosophy across different platforms.

But here’s the crucial question that really determines the “right” amount: What is the allowance for?

• Is it solely for treats and wants? If so, a smaller amount might suffice, letting them practice saving for that special toy or splurge.
• Is it meant to cover some of their expenses? As kids get older, you might want them to contribute to entertainment (movie tickets with friends), small clothing items they want but don’t strictly need, or even a portion of their school supplies. If this is the case, the allowance will naturally need to be higher to give them a meaningful budget.
• Is it primarily for saving towards a long-term goal? Then the amount needs to be significant enough that they see progress, but perhaps not so high that they don’t have to work for it.

There’s no single “magic number” because every family’s budget and values are unique. The key is to have an open conversation with your child (and your partner!) about what the allowance is intended to cover. This transparency not only helps you decide on the amount but also teaches your child about budgeting and financial planning from day one.

Beyond the Bucks: Making Allowance an Education, Not Just an Entitlement

Once you’ve settled on an amount, the journey has only just begun! The true power of allowance lies not just in the money itself, but in how it’s managed, taught, and discussed. It’s an incredible opportunity to transform abstract financial concepts into tangible, real-world lessons.

The Power of Predictable Pay Days: One of the best practices highlighted by Mydoh is the concept of a consistent “Pay Day.” With Mydoh, for example, Pay Day is every Saturday. You simply set the amount and frequency, and the money automatically goes into your child’s account and Smart Cash Card. Imagine the anticipation! This consistency is incredibly valuable:

• It builds trust: Children learn they can rely on receiving their money, just like adults expect their paychecks.
• It teaches planning: Knowing when their money is coming helps them plan their spending and saving for the week ahead.
• It mirrors real-world finances: Most adults get paid on a regular schedule, and this habit teaches children about reliable income.

The automation feature, like Mydoh’s automatic transfer to a child’s account and Smart Cash Card, removes friction for parents and provides a modern, safe way for kids to manage their money digitally. It’s a step towards understanding debit cards and online banking in a controlled environment.

Why Weekly (or Twice-Monthly) Works Best: A common guideline, and a really good recommendation, is to start with a weekly allowance or a twice-monthly allowance. “Why not monthly?” you might ask. For younger children, a month can feel like an eternity! Their concept of time and long-term planning is still developing. Seeing their funds add up more quickly provides:

• Immediate gratification (in a good way!): They see their hard-earned money grow, which is incredibly motivating for sticking to saving goals. If little Oliver gets his $5 every Saturday, he sees that $10 by the second week, $15 by the third, and suddenly that small goal (like a new book) seems much more attainable.
• Reinforcement: Frequent “pay days” reinforce the connection between effort (if allowance is tied to chores) and reward, or simply the consistent inflow of funds.
• Easier budgeting practice: It’s easier for a child to budget for a week or two than for a whole month, reducing the chance of them running out of money too quickly and feeling discouraged.

The Financial Literacy Toolbox: Spend, Save, Share (and Invest!): Allowance is a perfect vehicle for introducing the foundational pillars of money management. Many families use a “jar” system (physical or digital) where allowance is divided into categories:

• Spend: This portion is for immediate desires, allowing kids to experience the joy of purchasing something they want and the consequence of spending it all too quickly.
• Save: This is for larger, longer-term goals. It teaches patience, delayed gratification, and the power of incremental contributions.
• Share: This fosters empathy and generosity, encouraging kids to contribute to a cause, a gift for someone, or a community initiative.
• Invest (for older kids): As children mature, a small “invest” jar can introduce them to the idea of their money working for them, even if it’s just a symbolic amount or a discussion about simple investments.

The Chore Conundrum: To Tie or Not to Tie? This is a classic debate, and there’s no universally “correct” answer!

• Argument for not tying allowance to chores: Many parents believe that basic household chores (making beds, tidying rooms, helping with dishes) are part of being a contributing member of a family. Allowance, in this view, is purely a tool for financial education, separate from family responsibilities.
• Argument for tying allowance to chores: Other parents feel that linking allowance to tasks teaches a strong work ethic and the concept of earning money. It instills the idea that money is not just given, but earned through effort and contribution.
• The Hybrid Approach: A popular compromise is to provide a base allowance (untied to basic, expected chores) but offer “extra” opportunities to earn more money through “above and beyond” tasks (e.g., washing the car, deep cleaning the garage, helping with yard work). This way, kids learn both about family contribution and about earning extra income through specific effort.

The decision ultimately comes down to your family values and what you wish to prioritize. The most important thing is to be consistent with your chosen approach and clearly communicate it to your children.

Empowering Future Financiers, One Allowance at a Time

Giving an allowance is a powerful act of empowerment. It’s not just about providing money; it’s about providing opportunities to learn, make mistakes safely, and grow into financially responsible individuals. From understanding the varying amounts across Canada to finding the right weekly sum for your child, and crucially, using allowance as a dynamic educational tool, you’re laying the groundwork for a lifetime of smart money habits. So go ahead, embrace the adventure of allowance – your child’s future self will thank you for it!