Allowance for Kids by Age: How Much to Give and How to Start (3–8)
How much allowance to give kids 3–8, how to start, and simple rules that make it work. Plus a read-aloud set to go with it: Teddy Volume 1 ($69.99).
Quick answer: Many families start an allowance around age 5 or 6, and a common rule of thumb is about $1 a week per year of age. The amount matters less than the routine: pay on the same day, split it into save, spend and share, and let your child make small choices. To make the idea stick, read about it together; our pick is the Teddy Volume 1 five-book set ($69.99), which opens with saving and where money comes from.
An allowance is a child's first real budget. It turns "Can I have this?" into "Do I have enough for this?" That shift is the whole point.
Read it together
Teddy Volume 1 — 5-Book Hardcover Set
By Ryan Cohen · 5 illustrated hardcovers, 32 pages each · $69.99
Starts with Teddy and the Piggy Banks (saving for a goal) and Teddy Goes to Work (where money comes from): a natural companion to a first allowance.
View the set →At a glance
| When to start | Often around 5–6, when a child can count coins |
|---|---|
| How much | A common rule of thumb: about $1 a week per year of age |
| System | Three jars: save, spend, share |
| Our reading pick | Teddy Volume 1 five-book set ($69.99) |
How much allowance by age?
There is no correct number. These are starting points many families use; adjust to your budget and to what the allowance must cover.
| Age | Weekly amount (rule of thumb) | What it can cover |
|---|---|---|
| 3–4 | No cash yet, or a few coins | Dropping coins in a jar, sorting and counting |
| 5 | About $5 | A small treat, saving for a toy over a few weeks |
| 6 | About $6 | Treats plus a savings goal |
| 7 | About $7 | Small gifts for friends, longer goals |
| 8 | About $8 | Some of their own "wants" budget |
Should allowance be tied to chores?
Families split on this. A simple middle path works well for young children:
- Everyday chores are unpaid. Making the bed and clearing a plate are part of living in a family.
- Extra jobs can earn extra. Washing the car or helping with a big clean-up can pay a little more.
For ideas, see our chores for kids by age list.
How to start: five simple rules
- Same day every week. Predictability teaches planning.
- Use three clear jars. Save, spend, share. Seeing coins pile up matters at this age.
- Let them make small mistakes. Spending it all on day one is a cheap, useful lesson.
- Set one savings goal. A picture of the goal taped to the jar helps.
- Talk about it. A story is the easiest way in, which is why we pair allowance with books.
How the Teddy sets fit in
Each Teddy book by Ryan Cohen covers one everyday idea. Volume 1 covers saving, work and community helpers, which match a first allowance. Volume 2 ($69.99) adds wants versus needs and earning at a corn stand, useful once your child starts spending on their own. We sell these books; we suggest them for reading aloud with children about 3 to 8.
Prices
- Teddy Volume 1 five-book set: $69.99
- Teddy Volume 2 five-book set: $69.99
- Teddy Complete Collection, 10 books: $129.99
Prices checked September 25, 2026; see each product page for current pricing and availability. Age suggestions are our editorial recommendations for shared reading.
Frequently asked questions
What age should a child get an allowance?
Many families start around 5 or 6, when a child can count and understands that coins buy things. Younger children can start with a coin jar and no fixed amount.
How much allowance should a 6-year-old get?
A common rule of thumb is about $1 a week per year of age, so about $6. What the allowance must cover matters more than the exact number.
Should kids save part of their allowance?
Yes. A simple split into save, spend and share jars teaches that money has more than one job.
What book helps explain saving to a young child?
We suggest the Teddy Volume 1 set by Ryan Cohen, which includes Teddy and the Piggy Banks, a story about saving toward a goal.
Our recommendation
Start small, stay consistent, and read about money together the same week you start. Teddy Volume 1 gives you five stories to go with the first five allowance days.
Shop Teddy Volume 1 · See all Teddy sets
Related guides: How to teach kids about money by age · Best children's books about money · Needs vs wants for kids
The Teddy sets
Give the whole set
Each volume is a boxed set of five illustrated hardcovers by Ryan Cohen, 32 pages each, for reading aloud with children about 3 to 8. One set covers a whole season of bedtime stories, and every set ships free in the US.
Volume 1 · 5 books
Saving, work, community helpers, a trip to China, words and feelings
$69.99
See the set →
Volume 2 · 5 books
Wants and needs, earning, friendship, a new puppy, chores before play
$69.99
See the set →
Complete Collection · 10 books
Both volumes: every Teddy story in one gift
$129.99
See the set →