How much pocket money

Allowance table: How much pocket money is appropriate?

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Many families ask themselves about the appropriate amount and frequency of pocket money. For easier orientation, the German youth welfare offices every year a allowance table.

In addition, the following tips can help you determine the amount of pocket money for your child:

Make sure to adjust the pocket money to your financial circumstances. How much money is available to you as a family per month and are there siblings who also receive pocket money?
Talk openly with your child about money, and explain if necessary why a friend may have more or less money available.
Don't overdo it with the pocket money. Whoever always has a lot of money available doesn't learn to plan and to handle money responsibly.
For younger children it makes sense to pay pocket money weekly because they have difficulty grasping and planning longer periods.
With older children is also a monthly arrangement possible.

The allowance table gives you an overview of the recommended reference values:

Age	Amount
4 – 5 years	50 cents per week
6 – 7 years	1,50 – 2 € per week
8 – 9 years	2 – 3 € per week
10 – 11 years	13 – 16 € per month
12 – 13 years	18 – 22 € per month
14 – 15 years	25 – 30 € per month
16 – 17 years	35 – 45 € per month
18 years	70 € per month

Spend pocket money or save it? – Let your child decide

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When and what your child spends their money on should be up to them alone. Sometimes, however, bigger wishes bigger wishes arise that are worth saving for. Since you always pay the pocket money at the same amount regardless of money they earn themselves or gifts, it's easy to plan with it and work towards a more expensive goal.

Think together with your child about possible goals, such as a new bicycle, their own mobile phone, or a trip together that they can save for. At a certain point you can also contribute something so that your child doesn't have to save for an unreasonably long time to fulfill their wish.

Budget money as a supplement to pocket money

We all know what pocket money is: It is available to your child for their own use and it should not be mandatory to have to buy important things like clothing or school supplies with it.

From about the age of 14 the German Youth Institute recommends additionally the agreement of a so-called budget money as a supplement to pocket money. At that age, children are generally responsible enough to plan and oversee things independently.

What exactly is budget money?

Budget money is a certain amount that is available for the payment of clothing, transportation or other necessary expenses is available. Children and adolescents can decide themselves about it and spend what they consider necessary.

For a realistic assessment you can observe for a few months how much money your child spends on average for clothing, public transport or eating out, and set budgets accordingly. Your child cannot dispose of it as freely as their pocket money, but only spend it for the respective category. At the same time you thus grant them another degree of more freedom and independence.

Pocket money – how and from when? Tips for parents

You want to start giving pocket money to your child now – what should you consider?

Fixed structures:

Your child should not have to ask for pocket money. If amount and day are fixed, stick to them. That way your child can rely on you and learn to plan with their pocket money. In addition, the amount of pocket money should remain the same and not depend on behavior or performance.

Cash or into an account?

Money is something very abstract. Younger children it therefore helps to receive pocket money in cash to receive. From about 12 years old you can consider opening a current account consider, to which you transfer the pocket money. Special accounts for young people cannot be overdrawn and increase the feeling of independence.

Help with handling money:

Your child is still in a learning process and that also includes mistakes. If the money is spent too quickly or your child is upset afterwards about a purchase, you can help them next time or advise them on how they can better plan with their money. Accusations are less helpful here than patient guidance.

If the parents are separated:

Parents who live separately should agree on the amount of pocket money. Either each pays half or your child receives their money from only one parent. A few extra euros may be interpreted by your child as the wrong signal and it could become an object of comparison between you as parents.

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