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)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20250815SW

{/*Hero 200*/}

{/*Hero APR*/}

{/*trust pilot*/}

Received a mailer from us?
Enter confirmation #

{/*how it works*/}

How to apply for a
home equity loan online.

{/*what is a he loan*/}

You could save thousands
with a SoFi home equity loan.

The savings claim above is based upon using a SoFi Home Equity Loan to pay-off credit card balance of $60,000. We assume a credit card APR of 24%. The savings shown assumed payments of only the interest due. We compare that against an assumed SoFi Home Equity Loan of $60,000 (to pay off the credit card) with an APR of 7.29%. Annual interest savings assumes you pay both loans on time. You might not be eligible for the home equity loan and, if you are eligible, your APR rate could be higher. Eligibility and the lowest APR rate depend on credit worthiness, income, and other factors. The 24% APR is the average credit card APR reported by Wallethub for Q1 March 2025 under their Good Credit category.

{/*requirements*/}

{/*horizon*/}

{/*popular uses*/}

A home equity loan could
help with that.

{/*calculators*/}

{/*why SoFi*/}

300+ Reviews

See all reviews →

{/*learn more*/}

FAQs

See more FAQs

{/*how it works*/}

How to search luxury homes
in near 87121.

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

{/*influence factors*/}

Search luxury homes for sale in 87121.

Your dream luxury home is out there. Let us help you find it—start your search with the latest listings of luxury homes in 87121.

Listings displayed provided by HomeStory Real Estate Services, Inc.

Preparing to buy a luxury home for sale?

Use this quick checklist to ensure you’re ready when your dream luxury home hits the market.

View your rate

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

Preapproval vs. prequalification.

Prequalification is a preliminary step in your home-buying journey, giving you a general estimate of what you might borrow based on self-reported information. Preapproval goes a step further—we formally verify your finances and credit and give you a Verified Preapproval Letter to show sellers that you’re a serious buyer. See the chart below for further comparison.

View your rate

NEW! Getting preapproved is now a soft inquiry, meaning it won’t affect your credit score.^†

Learn more about getting preapproved for a mortgage.

FAQs

See more FAQs

Terms and conditions apply. Before you apply for a SoFi Mortgage, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and loan amount. Minimum loan amount is $75,000. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 12/18/25.

SoFi Mortgages originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org). Equal Housing Lender. SoFi Bank, N.A. is currently able to issue and refinance mortgages in all states except purchase only for New York.

Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.

SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.

If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.

Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.

SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.

The trademarks, logos and names of other companies, products and services are the property of their respective owners.

Screen images simulated. For illustrative purposes only.

©2025 SoFi Technologies, Inc. All rights reserved. HL25-2712400

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

We hear it all the time: Don’t put off saving for retirement. Contribute as much as possible — starting as early as possible — and you’ll dramatically improve your chances of financial security in the future.

And many people seem to be getting the hint. Workers with 401(k)s at both Fidelity Investments and Vanguard are contributing record shares of their paychecks, new data shows. At Fidelity, 401(k) participants saved 14.3% in the first quarter (including employer matches,) coming closer than ever to the company’s recommended 15% target.

There’s just one glaring problem: Not everyone has access to a 401(k). In fact, an estimated 47% of private sector workers in the U.S. — 59 million people — lacked access to a workplace retirement plan of any kind in 2023, according to a March report from Georgetown University’s Center for Retirement Initiatives.

And saving for retirement can feel a lot more challenging if you’re doing it DIY-style with an IRA or similar type of account. Last year 91% of people with access to an employer-sponsored plan like a 401(k) were saving for retirement, compared to 56% of those without access, according to a Transamerica Center for Retirement Studies survey.

So what? Workplace accounts can provide a big boost when it comes to saving for retirement, especially when your company matches some of your contributions. But they’re not the only game in town. Don’t let your work situation keep you from planning for your future. If your job doesn’t offer a retirement plan or you’re self-employed, consider these other popular ways to build a nest egg:

•   Use an IRA. If you or your spouse don’t have access to a workplace plan, the money you put into a traditional IRA can lower your taxable income and potentially grow on a tax-deferred basis in much the same way as it would in a 401(k). You’re not allowed to save as much — in 2025, the limit is $7,000 in an IRA vs. $23,500 in a 401(k) unless you’re over 50 — so the earlier you start, the better. If you’re income-eligible, there are also Roth IRAs, where you pay taxes on the money upfront but then it can grow tax-free.

•   Set up your own workplace retirement plan if you’re self-employed. If you’re a business owner, freelancer, independent contractor, or gig worker, see if you’re eligible to open a solo 401(k), SIMPLE IRA or SEP IRA — some of which may let you save even more than if you worked for someone else.

•   Save in a plain ‘ol brokerage account: You won’t get any tax breaks from it, but the lack of red tape can be freeing otherwise. There are no income limits and no caps on how much you can invest.

•   Set up a 401(k)-like direct deposit: You can have a portion of every paycheck go to retirement even if you don’t have a 401(k). Research shows that people are 15 times more likely to save for retirement if money is deducted automatically from their paychecks, according to Pew Charitable Trusts.

•   Use a roboadvisor: Many brokerage firms — including SoFi — give you a choice of how hands on you want to be with an IRA or brokerage account. A roboadviser picks out and manages your investments for you based on your retirement goals, so all you have to worry about is funding your account.

Related Reading

Born into Crisis, Gen Z Is Saving for Retirement Like No Other Generation (The Guardian)

Millions of Americans Are Falling Behind on Their Retirement Goals (The Pew Charitable Trusts)

7 Ways to Start Saving for Retirement (SoFi)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20250711SW