What's the going rate for kids' allowances in 2025?

Yahoo

19-06-2025

Inflation may be on most Americans' minds while they're at the grocery store and gas pump, but not when they're doling out their kid's allowance.
While 29% of parents have increased their kids' allowances over the last year to keep up with inflation, 65% have not, and 6% have decreased the amount they give their children, according to a new Wells Fargo survey.
'Whether or not the allowance has changed, the stark reality is that what kids are spending their money on has definitely increased,' said Louann Millar, head of student banking at Wells Fargo. 'That Starbucks that used to cost $3 is now $5.'
The survey found that 71% of American parents give their children an allowance, but the amount and way they transfer funds largely depend on their children's age.
Here's what to know:
The average weekly allowance for children ages 5 to 17 is $37.19 in 2025, according to the survey. However, that number is affected by some parents who give high allowances. The median weekly allowance is $20.
Allowances generally rise as kids age. For those ages 5 to 8, the average is $31.50, and the median is $15. Those ages 9 to 11 get a little more, receiving a weekly average of $34.32 and a median of $20.
For those 12 to 14, the average is $36.05, and the median is $20. The oldest kids, or those ages 15 to 17, receive the most – a weekly average of $44.88 and a median of $25.
More: Groceries, phone bills, rent? Where parents still help adult kids financially
Of parents who give their children allowances, a third regularly give and a quarter occasionally give their kids ages 5 to 8 one.
Millar said allowances are a good way for parents to teach their children about positive money habits, such as budgeting and saving up for a big purchase. She said starting young isn't a bad idea.
'Parents know and think it's a good idea to talk to children about money early on,' Millar said. 'Almost all of them think it's important to let kids make those small choices early on, because there are guardrails for them.'
The most common age for kids to receive an allowance is between the ages of 9 and 11. Half of parents regularly give, and 29% occasionally give children an allowance during that time.
Allowances are also common as children become teenagers. More than 70% of parents said they regularly or occasionally give their kids allowances when they are between the ages of 12 and 17.
Cash remains king when it comes to allowance, but digital payments are increasingly common.
At 73%, many parents give cash for allowance – and half give it exclusively, the survey found.
However, nearly a quarter of parents are also using peer-to-peer payment apps like Venmo to send allowance to their children, and 20% are using direct deposit to their kids' bank accounts. Some 14% use prepaid debit cards for the transaction.
Older kids are less likely to get cash than younger kids, but even 18% of children ages 5 to 8 are receiving allowance via direct deposit.
Millar said she's seen parents open debit cards for children that young. It's a sign of the times.
'I don't use cash at all,' Millar said. 'If anybody gives my kids cash, they will immediately turn around, give it to me and say, 'Can you send this to me electronically to my bank account?''
The pivot to digital payment is even affecting the tooth fairy.
While she still most often leaves cash, in 2025, she'll use peer-to-peer payment methods 11% of the time. The survey found that some 7% of tooth fairy payments come in the form of gift cards.
'Maybe when you forget to get cash to leave in the tooth fairy pillow, the digital options are a really nice way to be able to make sure your kiddo wakes up with something,' Millar said.
Reach Rachel Barber at [e-mail] and follow her on X @rachelbarber_
This article originally appeared on USA TODAY: From piggy banks to Venmo: How kids are getting their allowance now