There is not one dollar amount that's appropriate for all kids. The amount you decide on should be sufficient to provide your child with some extra money so he'll learn how to handle it. Many factors go into fixing an allowance. The four main ones are listed here:

·         Your child's age. Obviously, the older your child, the bigger the allowance (up to a certain point, at which your child may become too old for an allowance and need to earn their own income). A good rule of thumb is $1 for each year of the child’s age. Again, at a certain point this is not enough, usually when a child is in their teens. They should be expected to earn extra money above their allowance.

·         Your family income. Only you know how much your family can afford to allocate to allowances.

·         Where you live. Realistically, the neighborhood you live in can certainly influence how much allowance you give your child. What your child's best friend receives may not be a deciding factor, but it's a factor nonetheless.

·         What the allowance is supposed to cover. If you expect your teenager to buy all his own clothing from his allowance, then the dollars paid to him each week must be sufficient to allow for this extensive purchase. If you supplement an allowance with spending money, then a less generous allowance may be in order.

This way you can introduce your kid to better finance managementor money management.