Allowance for siblings

Fair does not mean equal

A 6-year-old and a 12-year-old do not need the same amount. They have different costs, different abilities and different ideas of what money is for. What they do need is to see the same rule applied to both.

Use one rule for everyone

The simplest way is to pick a formula and use it for every child. The rule of thumb from Acorns and Wealthsimple, 50 cents to $1 per week for each year of age, does this. Pick a point in the range, such as 75 cents per year of age, and apply it to each child.

This is an illustration, and your amounts may be lower or higher. What matters is that a younger child can see how the amount grows as they get older. Waiting for the next step becomes something to look forward to.

What to say when a younger child asks why

Keep the answer short and the same each time: the amount goes up each birthday, and when you are that age you will get that amount. Avoid comparing the children's behavior, effort or worth. The scale is about age and costs, nothing else.

• Show the table on paper so the younger child can see the steps.
• Mention what the older child covers that the younger does not, such as snacks out.
• Do not apologize for the difference. It is part of the plan.

Raises on birthdays

Some families raise each child's amount on their birthday. That keeps the rule consistent and spares you from negotiating. Older kids learn that more money comes with more responsibility. See allowance raises for more on when and how much.

Shared chores

When chores are shared, give each child jobs that match their age, and rotate the unpopular ones. Setting the table might go to the youngest and loading the dishwasher to the oldest, with a weekly swap on one disliked job. Tie jobs to age and not to who complains the least.

• Write the list where everyone can see it.
• Rotate one job each week so nobody is stuck with the worst one.
• If one child finishes early, help is welcome but not required.

Whether chores affect allowance is a separate choice. The guide on tying allowance to chores covers three common setups. If you pay per chore, make sure the price per job is the same for the same job, whoever does it.

Keeping money separate

Each child's money is their own. Do not move money between siblings, and discourage lending between them unless you step in to set terms. Fights over who owes whom can happen, and keeping the accounts apart helps avoid them.

When the oldest is also the helper

Older siblings may end up doing more for the younger ones, such as helping with homework or pouring cereal. If you want to recognize that, do it openly and with a fixed rule, such as a small extra for a regular job you ask them to take on. Casual favors that turn into unpaid expectations can build resentment.

Different goals, different timelines

A 5-year-old may save for two weeks, and a 14-year-old for six months. Support each child's goal at their own pace. Do not hold the older child's savings up as a model for the younger one.

Running several kids in Pouch

Pouch lets you add each child separately, with their own weekly allowance, chores, history and one savings goal. Amounts can differ per child, and the same rule applies to everyone. The printed weekly chart shows each child's jobs. Everything stays on your device, with no account and no real money.