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Allowance for Teens:
How much?!

An allowance for teens can be a tricky thing to determine - even if you've been at the allowance game for years. There are all-new expenses and uncharted responsibilities to cover. Where do you start? There are no hard and fast rules, but here are some suggestions and things to keep in mind.

allowance for teens

Lay the ground rules
Similar to the steps you followed when they were kids, be sure that everyone is on the same page about the allowance basics by checking out the allowance basics page.

So...how much allowance do teens get?
While a younger kids' allowance can be largely based on age, allowance for teens isn't quite as simple. Yes, the complexity of teens extends to their money matters, too!

What gets included now?
Now the questions on the allowance for teens can really start to get tough. That's largely because the difference between discretionary, incidental and necessary expenses start to blur. And be assured that a parent's definition of necessary is going to be different than a 15-year old girl's.

Here is where the groundwork that has been laid in the early years comes in handy. Go back to the expense tracking or list that got started in the preteen and younger teen years for the youth allowance paid then. Take the items that are on there and start adding other areas. Consider adding these items (whether it is the full cost or just some portion):

  • Clothing expenses beyond what you are willing to pay for out of the family budget.
  • School trips or vacations.
  • The cost of extracurricular activities, such as sports, cheerleading or playing a musical instrument.
  • Setting aside some portion for long-term savings. This may be where forced savings are a good idea. Or where you will want to start matching any savings that they make for these long-term goals.
  • For older teens, expenses related to driving. This includes gas, insurance premiums and repairs or maintenance. And this isn't even dependent on them having their own car - it may just be the increased use of the family car.

You will probably need to review these expenses more than once a year. There is enough change in teen lives and their money needs that you may not get it all on the first time through. Plus, things can change quickly!

What if they are working?
Everyone needs to be on the same page in whether the teen will be working. And, if so, how many hours and what will they earn? From there, you can move on to the next step.

What will the earnings cover? Now's the time to break out the expense list and make sure it is complete. There might be work expenses that need to be added. Or maybe some things have dropped off (not every junior high football player will want to play in high school).

Once you have the expenses mapped out, it's time to compare them to the income. Be careful not to overestimate the number of hours that the teen can or will be able to work - especially if this is their first job and the scheduling varies from week to week.

Use all of this to decide what combination of earnings and youth allowance work for you and your teen. And be sure to review it frequently at first. This is a big adjustment for everyone and it might take some work at first.

Remember that these are only guidelines and suggestions to get you started. The key is to take these and adapt them so you can figure out for you and your family how to make an allowance for teens work for you!

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