How Much Pocket Money for Kids in Australia (2025 Guide)

The $1-per-year rule (and why it's a starting point, not a law)

The most widely cited benchmark in Australia is $1 per year of age per week — so a 7-year-old gets $7, a 10-year-old gets $10. It's a clean, defensible number that scales naturally and is easy for kids to understand.

But it's a starting point, not a fixed rate. What actually matters is whether the amount is meaningful enough to create real decisions without being so large it eliminates all scarcity.

Age-by-age breakdown

Ages 5–6: The introduction ($3–$5/week)

At five and six, kids are just forming the concept that money is exchangeable for things they want. The amount matters less than the ritual.

What works at this age:

• A small amount given consistently (same day, same way every week)
• One "pocket" only — saving vs spending distinction is a year or two away
• Physical coins first if possible — the weight and feel of money is part of learning

Amount: $3–$5/week. Anything above $5 tends to remove the need to make any choices at all.

What to buy with it: Small treats at the shops — a $2 chocolate bar, stickers, a small toy. The lesson is that money leaves your hand when you spend it.

Age 7: The first saving goal ($5–$7/week)

Seven is a significant jump in financial understanding. Most kids can now hold a goal in mind across multiple weeks — they'll save up for a specific toy rather than spending whatever they have immediately.

What works at this age:

• Introduce the idea of two "pockets": spending and saving
• Set a goal together (not too far away — 4–6 weeks max)
• When they reach it, make a small event of the purchase

Amount: $5–$7/week. At $5/week, a $25 toy takes 5 weeks — concrete and achievable.

Age 8: Real choices begin ($6–$8/week)

Eight-year-olds can start to feel the tension between short-term spending and longer-term goals. They'll feel genuine disappointment if they blow their money on impulse and then can't afford something they actually wanted.

That discomfort is the lesson. Don't bail them out.

Amount: $7–$8/week. Consider tying some portion to contributions around the house — not as punishment, but as an early link between effort and reward.

Age 9: Multiple goals, real autonomy ($8–$10/week)

By nine, many kids are ready to manage multiple saving goals at once — "spending", "saving for X", and maybe a "giving" pocket if that's important to your family.

What to expect: More negotiation about what counts as a chore, more interest in how much things cost, the first experience of genuinely having to wait for something they want.

Amount: $8–$10/week.

Age 10: Approaching independence ($10–$12/week)

Ten is often when pocket money starts covering things it didn't before — school tuck shop, outings with friends, games. This is intentional: expanding the scope of what the child is responsible for buying increases engagement dramatically.

Amount: $10–$12/week. Some families move to a fortnightly or monthly payment to mirror how adults are paid and to teach budgeting across a longer horizon.

Quick reference

These are guideline ranges, not prescriptions. Cost of living in your city, whether pocket money covers some expenses, and your family's income all affect the right number for you.

The three questions worth asking before setting an amount

1. What is this money meant to cover? Pure discretionary spending is different from pocket money that replaces parental payments for incidentals. If you're expecting your 10-year-old to buy their own school snacks from their pocket money, $12/week is different from $12/week that's purely fun money.

2. Does it create real decisions? If your child never has to choose between two things they want, the amount is too high. If they can never afford anything at all, it's too low and they'll disengage.

3. Is it consistent? Irregular pocket money teaches nothing — kids learn to ask rather than plan. Pick a day and stick to it.

Should pocket money be tied to chores?

This is one of the most debated questions in the pocket money world, and the honest answer is: it depends on what you want to teach.

The case for linking them: It creates a genuine connection between effort and reward that mirrors how the adult world works. Chore-linked systems tend to produce more engaged kids.

The case against: Some family chores are just part of being in a household — doing the dishes isn't a paid gig, it's a social expectation. Paying for everything can erode that.

A middle path that many families land on: baseline chores are expected (bed made, dishes in the sink) and unpaid. A small set of additional contributions earns extra. The base pocket money amount remains steady.

Inflation and when to review

Australian wages have risen significantly since 2020. If you haven't reviewed your child's pocket money in two or three years, it has almost certainly lost real purchasing power. A $5/week allowance for a 9-year-old set in 2021 buys meaningfully less in 2025.

Review annually — a good time is birthdays, when the age-linked amount naturally steps up anyway.