Table of Contents
Allowance - When and how much?
Promoting independence and financial responsibility are essential aspects of raising a child, so making the right decisions about allowance is particularly important. In this guide, you will learn everything you need to know about allowance, from the right time to start giving it to the Youth Welfare Office's recommendations on the amount.
Allowance - At what age?
There are no strict rules or uniform recommendations for the ideal age to start giving children allowance. The decision depends on various factors, including the child's individual development, the family's financial situation, and the parents' educational philosophy.
Generally, parents start giving their children allowance when they are old enough to understand the value of money and perform simple financial transactions. This can usually begin when they start elementary school and begin to grasp basic mathematical concepts better.
How much allowance should you give?
The amount of allowance depends on many factors. The child's development is as important as the parents' income and financial capabilities. For a rough guideline and educational recommendations, parents can refer to the local youth welfare office. The website of the Federal Ministry for Family Affairs also provides an allowance table with recommendations based on the child's age. We have discussed this in detail below.
The youth welfare office's allowance table
The official website of the Federal Ministry for Family Affairs offers a practical table that provides an overview of the recommended allowance amounts relative to the child's age. These guidelines, based on recommendations from the German Youth Institute, can serve as a benchmark for parents.
Currently, the following allowance amounts are recommended:
Under 6 years: €0.50-1.00/week
6 years: €1.00-1.50/week
7 years: €1.50-2.00/week
8 years: €2.00-2.50/week
9 years: €2.50-3.00/week
10 years: €16.00-18.50/month
11 years: €18.50-21.00/month
12 years: €21.00-23.50/month
13 years: €23.50-26.00/month
14 years: €26.00-31.00/month
15 years: €31.00-39.00/month
16 years: €39.00-47.00/month
17 years: €47.00-63.00/month
18 years and older: €63.00-79.00/month
Allowance and early financial education - Why they are so important!
Allowance is more than just a small amount of money given by parents to their children. It provides an opportunity to impart important lessons about money management early on. The significance of allowance and financial education at a young age cannot be overstated. By learning to manage money, create budgets, and set savings goals early, children lay the foundation for financial competence in adulthood. This knowledge helps them make informed financial decisions in the future and protect themselves from debt and financial problems. Therefore, it is crucial to view allowance not only as financial support but as a valuable educational opportunity that parents can provide their children.
