Allowance for Ages 6-7: The Elementary School Money Management Guide
Why Ages 6-7 Are Critical for Money Education
First and second grade mark a pivotal time in your child’s financial education. At ages 6-7, children are:
- Learning addition and subtraction in school
- Developing stronger reading skills to understand price tags
- Building longer attention spans for financial conversations
- Experiencing increased independence at school and home
- Starting to compare what they have with peers
This developmental stage makes it the perfect time to level up from basic money concepts to more structured allowance systems and financial responsibility.
Recommended Allowance for Ages 6-7
For children in first and second grade, financial advisors typically suggest:
$2-7 per week
The range depends on several factors:
- Family budget: What’s sustainable for your household
- Geographic location: Cost of living in your area
- Responsibilities: How many chores are expected
- Learning goals: What financial lessons you’re prioritizing
Popular Allowance Formulas
Age-Based Formula: $0.50-$1 per year of age
- 6-year-old: $3-6 per week
- 7-year-old: $3.50-7 per week
Fixed Amount: $5 per week regardless of age
- Easier to remember and manage
- Can include bonus opportunities for extra tasks
Commission-Based: $0.25-0.50 per chore completed
- Teaches direct work-to-earnings connection
- Requires more tracking and management
Dividing Allowance: Spend, Save, Share
At this age, children benefit from learning to divide money into categories:
For $5 Weekly Allowance:
- Spend: $2.50 (treats, small toys, collectibles)
- Save: $2.00 (larger purchases, future goals)
- Share: $0.50 (charity, helping others)
Why This Matters:
- Spending money teaches decision-making and consequences
- Savings builds delayed gratification and goal-setting
- Sharing develops empathy and community awareness
Consider using three clear jars or envelopes labeled with each category to make the division visual and concrete.
Age-Appropriate Chores for 6-7 Year Olds
Children in early elementary school are capable of more independent tasks than preschoolers. Here are chores suitable for American households:
Daily Responsibilities
- Make their bed independently
- Get dressed and ready for school
- Put dirty dishes in the dishwasher
- Feed and water pets
- Pack their school backpack
- Put away clean laundry in drawers
- Clear their place at the table
- Wipe bathroom sink after use
Weekly Chores
- Take out bathroom trash
- Vacuum their bedroom
- Water outdoor plants or garden
- Dust furniture and shelves
- Help fold laundry (towels, washcloths)
- Sweep kitchen or entryway floor
- Clean mirrors and windows (lower sections)
- Organize toy shelves or bins
Seasonal/Extra Credit Chores (for bonus money)
- Rake leaves in fall
- Help wash the family car
- Pull weeds in the garden
- Organize garage or storage areas
- Help with younger siblings
- Wash outdoor toys or bikes
Structuring Your Allowance System
Option 1: Base Allowance + Bonus System
Give a base allowance (e.g., $3/week) for being a family member, plus opportunities to earn extra:
- Base allowance: $3 (no strings attached)
- Bonus chores: $0.50-$1 each for extra tasks
Pros: Teaches that family members contribute while also showing the work-money connection Cons: Requires tracking two systems
Option 2: Pure Commission
Pay only for completed chores:
- Each chore = $0.25-0.50
- 10-15 chores per week = $2.50-7.50
Pros: Direct cause-and-effect, strong work ethic Cons: May make children reluctant to help without payment
Option 3: Allowance for Life Skills
Unconditional allowance for learning money management:
- Fixed amount regardless of chores
- Chores are expected family contributions
- Focus is on teaching financial literacy
Pros: Separates money education from household help Cons: Less direct connection between work and earnings
Teaching Financial Concepts at Ages 6-7
Needs vs. Wants
At this age, children can grasp the difference:
Needs: Food, clothes, shelter, school supplies Wants: Toys, candy, games, collectibles
Activity: At the grocery store, have them identify needs vs. wants in your cart.
Comparison Shopping
Early elementary students can start comparing:
- “This toy costs $8 at Store A and $6 at Store B. Where should we buy it?”
- “Brand name cereal is $5, store brand is $3. What’s the difference?”
Counting Money
Practice with real money:
- Count coins and bills together
- Make change from purchases
- Exchange coins for dollars (4 quarters = $1)
- Calculate how many weeks to save for a desired item
Setting Savings Goals
Help your 6-7 year old:
- Choose a specific toy or item they want
- Find out exactly how much it costs
- Calculate how many weeks of saving needed
- Create a visual tracker (chart, thermometer, jar)
- Celebrate milestones along the way
Example: “You want the $20 LEGO set. You’re saving $2 per week. That’s 10 weeks. Let’s mark it on the calendar!”
Common Challenges and Solutions
Challenge: “I Want It NOW!”
Solution:
- Acknowledge their feelings: “I know waiting is hard”
- Reference their goal: “You’re saving for that bike”
- Offer choices: “You can buy this now, but then you’ll need to start over saving for the bike”
- Stay firm with natural consequences
Challenge: Lost or Stolen Money
Solution:
- Use as a teaching moment about responsibility
- Don’t immediately replace it
- Help them problem-solve: “What could you do differently next time?”
- Consider a small loan they repay from future allowance
Challenge: Peer Pressure (“Everyone has more money than me!”)
Solution:
- Explain that families have different rules and budgets
- Focus on their goals and progress
- Remind them of ways to earn extra
- Discuss needs vs. wants and values
Challenge: Forgetting to Do Chores
Solution:
- Use visual chore charts
- Set consistent times (chores before screen time)
- Natural consequences (no chores = no allowance)
- Consider a chore app with reminders
Making Allowance Day Effective
Create a weekly ritual that reinforces learning:
Sample Saturday Allowance Routine:
- Review the week (5 minutes)
- Look at completed chore chart
- Discuss what went well
- Address any missed responsibilities
- Pay allowance (2 minutes)
- Hand over money or record digitally
- Let them count it
- Divide into categories (3 minutes)
- Sort into spend/save/share
- Add to existing amounts
- Count totals
- Check savings goals (2 minutes)
- Update progress charts
- Celebrate milestones
- Discuss how close they are to goals
- Plan ahead (3 minutes)
- Upcoming expenses or wants
- Earning opportunities this week
- Any special activities
Total time: 15 minutes of quality financial education weekly
Handling Special Situations
Birthday and Holiday Money
When grandparents or relatives give money:
- Let your child decide most of it
- Suggest (don’t mandate) saving a portion
- Use it as a lesson in gratitude (thank-you notes)
- Discuss whether to combine with allowance savings or keep separate
School Expenses
Decide what allowance covers:
- Book fairs: Are they allowed to use their money?
- School fundraisers: Family contribution or their choice?
- Field trips: Parents pay, or savings opportunity?
Being clear prevents confusion and teaches budgeting for known expenses.
Advances and Loans
General rule: Avoid giving advances. However, if you do:
- Make it clear it’s a loan, not a gift
- Deduct from next allowance immediately
- Keep it rare (once or twice a year maximum)
- Use as a lesson about credit and debt
Leveraging Technology for 6-7 Year Olds
While physical money is important for this age, technology can support learning:
Apps like Chores and Allowance - EarnUp offer:
- Picture-based chore tracking (great for early readers)
- Visual allowance ledgers
- Parent approval systems for completed tasks
- Balance tracking children can check independently
- Combining physical money with digital record-keeping
This prepares them for the increasingly digital financial world while maintaining hands-on learning.
Red Flags to Watch For
Warning signs your system needs adjustment:
- Constant negotiations: System might be too complicated
- No enthusiasm: Rewards may not be motivating enough
- Always broke: Allowance might be too high (spending immediately)
- Never spending: Might be afraid to use their money (need permission)
- Fighting over chores: Expectations might be unclear
- Parent frustration: System is too burdensome to maintain
Adjust as needed. The best system is one that works for your family long-term.
Setting Up for Success
Week 1: Foundation
- Explain the new allowance system
- Create a simple chore chart together
- Set up spend/save/share containers
- Choose first savings goal
Week 2-4: Establish Routine
- Consistent chore times daily
- Weekly allowance day same time/place
- Help with money sorting and counting
- Positive reinforcement for following system
Month 2-3: Build Independence
- Let them check their own progress
- Reduce reminders about chores
- Allow natural consequences
- Encourage decision-making
Month 4+: Mastery and Growth
- Increase responsibilities gradually
- Consider raising allowance by $0.50-1
- Add new financial concepts
- Celebrate their growing money skills
Real Parent Success Story
“We started our 7-year-old daughter on $5 per week when she entered second grade. She gets $2.50 to spend, $2 to save, and $0.50 to share. Her daily chores include making her bed, feeding our cat, and clearing her dinner dishes.
After three months, she saved enough to buy a $25 art set she’d been eyeing. Watching her count her savings, realize she had enough, and make that purchase herself was incredible. She values that art set more than any toy we’ve ever bought her.
The share jar was interesting too. She decided to donate to the animal shelter after visiting with her class. She was so proud to hand over her $6 in coins.
The best part? She now understands that money is finite. When she asks for random toys at Target, I say, ‘Do you want to use your spend money?’ Usually she says no—it’s not worth it to her. That’s the lesson right there.”
—Jessica M., Minnesota
Looking Ahead
Ages 6-7 are foundational. The habits and concepts your child develops now will:
- Shape their relationship with money for life
- Teach work ethic and responsibility
- Build math skills applied to real life
- Create confidence in decision-making
- Establish communication about finances in your family
Start simple, stay consistent, and watch your child’s financial literacy grow week by week.
