The most common formula is $1 per year of age per week.

For example: 6-year-old gets $6/week, 10-year-old gets $10/week, 15-year-old gets $15/week.

This can be adjusted based on your family budget, local cost of living, and whether allowance is tied to chores.

Experts recommend a hybrid approach: provide a base allowance unconditionally to teach money management, plus optional paid chores for extra income.

Base allowance teaches budgeting regardless of behavior, while paid chores teach work ethic and earning potential.

Most experts suggest starting around age 4-6 when children can count money and understand basic wants vs needs.

Start small ($1-2/week) focusing on saving for small toys.

By age 7-8, introduce budgeting concepts with categories like spending, saving, and giving.

Use regional cost adjustments: expensive areas (NYC, SF) multiply by 1.3x, moderate areas (Denver, Austin) use 1.0x, lower-cost areas (Midwest, South) multiply by 0.8x.

Consider local prices for typical kid purchases like snacks, movies, or games.

The 80/20 rule works well: 80% for spending and short-term goals, 20% for long-term savings.

Some families use 70/20/10: spending/saving/giving.

Adjust percentages as kids get older - teens might save 30-40% for bigger goals like cars or college.

Transition to monthly allowance around age 13-14 when teens can better manage longer-term budgeting.

Start with bi-weekly payments at age 12, then monthly by high school.

This prepares them for real-world monthly paychecks and bill cycles.