Pocket money or Allowance for teenagers: A parental guide to get started!

Pocket money or allowance for teenagers: A parental guide to get started

“Mumma, I want to buy this latest makeup brand product (lipstick, eyeshadow etc.) before it ran out.” 

“Mumma, I want more shoes, handbags and hair accessories for creating an impressive collection” 

And the list goes on and on.  

If you are a mom of teenage girls, then I am sure you could co-relate with these occurrences.  

Yes, the teenage years is the time when girls (and even boys too) start paying proper attention to their looks and other lifestyle habits. They want to keep their wardrobe updated with the latest version of outfits. They often have a long list of various lifestyle essentials to be the best version of themselves.  

Of course, there is nothing wrong in making personal grooming a priority. And you as a parent also feel great when your kids (in my case girls) look pretty princesses.  

But what about the extra burden on your monthly budget.  

With the conveniency of online shopping (Amazon is their best friend), it is hard to keep a check on expenses and sometimes, it feels too overwhelming, when things seem out of limit.  

I was going through the same dilemma for the last few months. After giving a proper thought, I found an effective solution to overcome this problem. I had decided to give them a monthly allowance (pocket money) to manage their non-urgent and other personal expenses.  

To make this move a success, I did lots of research and learnt the proper way to how to start a weekly or mothy allowance (pocket money) for teenage girls and make it right.  

In this post, I am sharing more information on the same topic. I hope it will help other parents who are going through the same dilemma.  

What are the benefits of giving pocket money to teenage kids? And what are some effective tips to make it successful? Read on to know more.  

What are the benefits of giving pocket money to teenagers?  

Financial Literacy 

 Introducing pocket money to teenagers allows them to become more financially literate. They learn the basics of handling money, making choices, and understanding the value of their hard-earned cash. 


Managing their pocket money encourages teenagers to take responsibility for their own finances. It’s a gradual step toward independence as they learn to prioritize their spending and make decisions that align with their values and needs. 

Budgeting Skills 

Pocket money provides a safe space for teenagers to practice budgeting. They’ll need to plan how to allocate their money for various expenses, such as leisure activities, snacks, clothing, and other personal desires. 

What is the ideal age to start giving pocket money to kids? 

Well, the answer depends upon multiple factors such as family finances, interest of kids etc. it can be different from different families. In general, when kids have a list of their personal expenses and when they show interest in managing money or minor finances on their own, then you can start giving them pocket money to build a basic sense of financial literacy. 

What is the right amount to start with pocket money? 

As per standard guidelines, “It should be equal to their age for weekly allowance, that means, for A 12-year-old kid, the amount will be $12 per week”. You can use these guidelines to get started or can set your own amount after discussing with your kids.  

Is it ok to include household chores as a compulsory task while giving pocket money to kids? 

Well, there are mixed opinions on this aspect from parenting experts. Some experts suggest you can make a list of household chores and can ask your kids to complete them to get their pocket money. While some experts say that you should keep household chores as a separate entity, and it should not be mixed with the concept of pocket money or getting paid.  

Tips for parents to get started with pocket money!

Pocket money or allowance for teenagers: A parental guide to get started
Pocket money or allowance for teenagers: A parental guide to get started

Set Clear Expectations: Before you start giving pocket money, have a discussion with your teenager about what the money is for and what you expect them to use it for. This can include basic expenses, saving goals, and even some discretionary spending. 

Start Small: Begin with a modest amount of pocket money and gradually increase it as your teenager demonstrates responsibility and good money management skills. 

Teach Budgeting: Help your teenager create a budget. Teach them to allocate their pocket money for different categories, such as saving, spending, and any specific goals they might have. 

Encourage Saving: Emphasize the importance of saving. Encourage your teenager to set aside a portion of their pocket money to save towards short-term and long-term goals. 

Allow Mistakes: Part of learning about money management involves making mistakes. If your teenager spends all their pocket money quickly and regrets it later, use it as a learning opportunity rather than a punishment. 

Use a Regular Schedule: Decide on a regular schedule for giving pocket money, whether it’s weekly, bi-weekly, or monthly. Consistency helps your teenager develop a sense of financial routine. 

Involve Them in Family Budgeting: Share some aspects of your family’s budget with your teenager. This can help them understand the value of money, the cost of living, and the choices you have to make as a family. 

Discuss Needs vs. Wants: Teach your teenager to differentiate between needs and wants. This will help them make more mindful spending decisions. 

Encourage Earning: Consider linking pocket money to tasks or chores around the house. This teaches your teenager the connection between work and earning money. 

Provide Guidance, Not Control: While it’s important to guide your teenager’s money choices, give them a degree of autonomy in how they manage their pocket money. This helps them learn from their decisions. 

Discuss Long-Term Goals: Talk to your teenager about their long-term financial goals, like saving for a car, college, or a trip. This can motivate them to manage their pocket money more effectively. 

Be Available for Questions: Make sure your teenager knows they can come to you with any questions about money. Create an open environment for discussing financial matters. 


Pocket money or allowance is a great way for families to teach their kids basic money management. Remember, the goal is to gradually teach your teenager to become financially responsible and independent. The lessons they learn through managing their pocket money can be valuable for their future financial well-being. 


  • Preeti Chauhan

    Surbhi your 12 tips about how to decide on pocket money for a teenager are really helpful, I especially liked the fact that there can be a discussion about their long-term goals and that we should guide but not control their spends.

  • Alpana Deo

    These are some practical tips. My daughter 15 but she is not at all into a typical teenage fashion trend. I feel myself lucky about it ????. But when she was in elementary school, time to time, we had and still have talks about budget. She very well understands the importance of saving and spending. I think, even if we start giving them allowance from teenage, we can always start the conversation about finances to young kids as well in their understandable language.

  • Harjeet Kaur

    A heart-to-heart talk can help deciding how they would spend the pocket money and yes chores should be given I feel to make them realize that nothing comes for free and value what they are getting.

  • Samata

    My son is too young to introduce the concept of pocket money but when I look back and remember my time. I got my first pocket money of INR 500 when I was in 1st year of college and that was only given because I moved to a new city away from my home for studies. If in any month I accidentally ask for Rs.100 extra I need to give clear reasons for the need of that money. Will Today’s kids be that obedient? I doubt but as parent I will keep no stone unturned to understand the need and importance of pocket money to my son when time will come.

  • Ruchie

    Being a parent of a teenager, we make sure that she learns the value of money and the way you shared the benefits why and how pocket money can add life lessons in their life is really helpful for every parents.

  • Rakhi Jayashankar

    My daughter is walking to her Teenage which is to come next year. I was thinking of slowly introducing the idea of pocket money with her. But she is very careless about money n all. Hence I was wondering how. Your tips seem quite effective. I will apply them to see if there is any difference. Thanks dear

  • Varsh

    We’ve talked to my 15yo about pocket money but haven’t really started yet. When he goes to college next year and needs money regularly it’ll be a necessity though. I don’t agree with paying for work however, somehow it makes kids too expectant and money-minded with family too.

  • Monidipa Dutta

    Before giving them pocket money we need to teach them how to use it, that is what Ive seen in my household. Being a late 90s kid the poscket money concept came for me when I was in Grade 9 but my neices, they have been getting pocket money since they were in grade 6 and I had seen my sister in law and brother in law to educate them how to properly utilise it and they actually save from that as well, Your tips are very important while teaching kids about money managing.

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