If you’ve got kids, the whole allowance thing can be tricky.

On the one hand, giving an allowance can be a worthwhile investment in your kids’ understanding and appreciation of money. It can teach them about saving, budgeting, and making choices — and provide a structured way to dole out spending money.

On the other hand, you may be wary of adding more focus on money. Plus, there’s the question of how much to pay and at what age to start.

According to a recent Wells Fargo/Ipsos survey, 43% of parents with children ages 5 to 17 regularly give an allowance, and another 28% give one occasionally. The median (aka most typical) amount per week is $15 for the youngest children and $20 or $25 for older age groups.

Sound like a lot? Remember, every family is different, and only you know what’s right for yours. But if you’ve been on the fence about starting an allowance, or just want a gut check on the one you already give, here are a few things to consider:

1.   Choosing an amount: More than a quarter (28%) of parents in the Wells Fargo survey said they’re paying their kids $50 or more a week! But the old rule-of-thumb to give $1 for every year of the child’s age (eg. $5 for a 5-year-old) is a good baseline to consider.

2.   Selecting a payment method: With younger kids, physical cash works best since they can see and count it. Later, you can transition to direct bank deposits or digital payments through Venmo, Apple Cash, or a debit card specifically for kids.

3.   Deciding whether you’ll require chores. Personal finance influencer Dave Ramsay says you shouldn’t just hand your kids money with no strings attached. But other experts like Ron Lieber, a money columnist for The New York Times, say contributing to the household should be non-negotiable. If moms and dads aren’t paid for mowing the lawn or cooking dinner, then why should kids be paid to walk the dog? This school of thought separates allowance from chores. One is a tool for practicing money skills, the other a way of instilling a strong work ethic.

4.   Deciding on raises: When will you give them? At birthdays? Or when the cost of living is noticeably higher? Nearly 3 in 10 parents in the Wells Fargo survey said they bumped their kids’ allowance in the past year due to inflation.

So what? An allowance can be a good way to instill healthy financial habits early. And the teaching-kids-about-money ball is often in parents’ court, considering it’s not yet a standard part of many school curriculums. (Ten states require a personal finance course in high school and another 19 are planning to.) If you go the allowance route, make it count. Here’s some inspiration for age-appropriate money lessons:

•  Practice delayed gratification. Have kids save up for a special toy or video game.

•  Try budgeting. Set up a jar or envelope system to divide payments into “save, spend, and give” so children learn how to allocate their money toward multiple goals.

•  Understand the power of compound interest. Show kids how they can grow their money through vehicles like a high-yield savings or teen brokerage account.

Related Reading

An Age-by-Age Guide to How Much Allowance to Give Your Kids (Parents)

How to Teach Your Kids About Money: 6 Tips (SoFi)

Teaching Kids Financial Skills With Their Allowance (FitMoney)

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