Pocket money
Allowance: Financial Education at Home
Saving money and making ends meet isn't as easy as it seems. Children first have to learn how to handle money—the sooner, the better. Allowance helps introduce children to the topic in an age-appropriate way.
You don't talk about money?
Not at all! It’s a good idea to start talking to your child about money early on. Financial education begins at home, at the latest when your child starts school. That’s the right time to start giving them their first allowance. Small amounts of money that your child can spend as they wish give them the opportunity to learn early on what it means to spend money or to save up to fulfill their own wishes. This can only succeed if your child is introduced to the topic step by step and in an age-appropriate way.
How much allowance at what age?
You decide how much pocket money to give your child—based on your financial situation and the number of children you have. It’s important that pocket money is paid at reliable and regular intervals so your child can plan accordingly. The amount of allowance should be based on your child’s age but should not be tied to any conditions. For elementary school-aged children, allowance is initially paid weekly; as your child gets older, it is paid monthly. The rule here is: The longer the period your child has to manage the available amount, the more challenging the task becomes.
The following allowance table provides a general guide to what amount is roughly appropriate for each age group. The graduated amounts are based on a recommendation from the German Youth Institute. Of course, the amounts can be adjusted to fit your family’s budget.
| Childhood | Recommended Pocket Money |
|---|---|
| 10–11 years | 15.00 – 25.00 euros/month |
| 12–13 years | 20.00–30.00 euros/month |
| 14–15 years old | 25.00–45.00 euros/month |
| Ages 16–17 | 40.00–60.00 euros/month |
| 18 years of age or older | 55.00–75.00 euros/month |
German Youth Institute (DJI), 2025, adapted presentation
What can the allowance be spent on?
As a general rule, allowance is meant to be a learning experience. Your child can decide for themselves what to spend the money on. Whether it’s candy, comic books, fast food, or music: let your child do as they please. Maybe they’ll use up the entire budget right away or spend it on a bad purchase. Stay calm! Pocket money only has its educational effect once your child realizes they need to manage their money wisely. By the way, freely available pocket money shouldn’t have to cover school supplies, clothing, or other everyday items. It’s a different story when it comes to larger personal wishes. It should be worth saving up for a special game or piece of clothing that’s a one-time purchase.
Pocket Money: What Does the Law Say?
What kinds of purchases are children actually allowed to make with their pocket money? And can you reverse unwanted purchases? These are valid questions that many parents ask themselves. The law in Germany states the following:
- Children under the age of 7 are legally incapable of entering into contracts. They may not buy anything without their parents’ consent. Strictly speaking, this also applies to a piece of gum or an ice cream if the parents aren’t present.
- For children and adolescents aged 7 to 17, the so-called “pocket money provision,” Section 110 of the German Civil Code (BGB), applies. This provision stipulates that children and adolescents aged 7 and older may purchase items appropriate for their age if they have received pocket money for this purpose or for their own discretionary use. However, sales contracts are invalid if children and adolescents
- purchase items they are not permitted to own, such as alcohol, cigarettes, or drugs.
- purchase items whose cost exceeds the usual amount of pocket money, such as electronic devices.
- purchase items tied to a specific term, such as a cell phone with a contract term or a magazine subscription. If a young person enters into such a contract without parental consent, it is legally invalid until the parents approve the contract.
- Children have full legal capacity starting on their 18th birthday. Once they reach the age of majority, there are no longer any restrictions.
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