What children can learn at each age
- Ages 3 to 5: Through play and grocery trips, children learn that you pay money to buy things and that money is earned by working. Dropping coins in a piggy bank lets them see money build up.
- Ages 6 to 7 (around starting school): Once they can count and tell coins and bills apart, it is a good time to start an allowance. Start with a short period (a week) and a small amount.
- Early elementary: Write money in and out in an allowance notebook. Experience saving for a few weeks for something they want.
- Upper elementary: Stretch the allowance period to two weeks or a month and widen what it covers, such as school supplies and snacks, to practice planning. Talk together about advertising, sales and how online payments work.
Setting an allowance
- Set the amount according to your family's budget and what the allowance has to cover (snacks only, or snacks and supplies). Explaining your family's standard matters more than what friends get.
- Give the agreed amount on the agreed day. If it is irregular, it doesn't teach planning.
- Let your child decide what to buy with it. As long as it isn't dangerous or against family rules, even a disappointing choice is a lesson.
- Don't top it up as soon as it runs out. Waiting until the next allowance day is the biggest lesson of all.
- Many families treat basic chores (tidying their room, helping at meals) as part of family life and don't tie them to money. Paying a little for extra jobs is each family's choice.
Saving and learning to wait
A clear piggy bank works well for young children. Seeing the money grow makes waiting feel less abstract. Many families split the allowance into "spend" and "save" money in two jars.
When your child wants something, put up a picture of it and count together how much is left to reach the goal. A goal that is too far away is easy to give up on, so start with one they can reach in a few weeks.
Opening a bank account in your child's name and going to the bank together is a good experience too. Required documents and conditions vary by bank, so check in advance.
Needs versus wants
When shopping, sort out loud what you really need and what would just be nice to have, and your child will learn the difference. Writing a list together before going to the store and buying only what is on it is good practice.
Talk about why ads, "limited edition" and "today only" make us want to buy. You can make a rule to wait a day or a week and see whether they still want something.
Letting children see how you make money choices is also teaching. Explain family decisions at their level, such as "This month we're eating out less to save for a trip."
Cards, mobile pay and game purchases
With cards and mobile payments, money doesn't feel like it is leaving your hand, which is hard for children. Practice with cash first, and when moving to digital payments, check the balance together each time.
- Before handing your phone or tablet to a child, set the app store to require a password (or biometric check) for every purchase.
- Don't leave your child logged in to an account with a saved payment method. Parental controls can require a parent to approve purchases.
- Make it clear that in-game items, random loot boxes and "top-ups" are real money.
- Turn on purchase text or email alerts and review the history regularly.
FAQ
At what age should an allowance start, and how much?
There is no fixed standard. Many families start around school entry, when children can count money, with a small weekly amount. Set it by what it must cover and your family budget, and lengthen the period and widen the scope as your child grows.
Should I pay for chores?
It differs by family. A common approach is to keep basic chores as each family member's share and not tie them to money. Paying a little for extra jobs is optional.
My child made a secret in-game purchase.
First ask the app store and the game company for a refund. In Korea, purchases a minor makes without a legal guardian's consent can often be cancelled, though there are exceptions. If it isn't resolved, contact the consumer counseling center at 1372. Rather than scolding hard, explain that purchases are real money and set a payment password.
My child spends the whole allowance as soon as they get it.
That is itself a chance to learn. Don't hand over more; let them wait until the next allowance day, then talk together about what they bought and whether they have regrets. Splitting money into spend and save also helps.
Sources
- Financial Supervisory Service (Korea) Financial Education Center
- Korea Consumer Agency
- AAP HealthyChildren.org
Medical information is for reference only. This is general information and does not replace diagnosis or treatment. Always talk to your child's doctor. In an emergency in Korea, call 119.
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