Pocket Money — Recommended Amounts and Rules for Every Age

Why Pocket Money is Important

Pocket money helps children learn money management — planning, saving, and making decisions. It's money for the child's own spending — different from Kindergeld, which the state pays to parents for child maintenance. In Germany, there is no legal right to pocket money, but youth authorities and family experts strongly recommend it from preschool age.

Recommended Amounts by Age

The table below is based on recommendations from the German Youth Institute (DJI) and youth authorities:

Important: These amounts are recommendations and depend on family income. Less does not mean failure — what matters is that the child learns to manage money.

Weekly or Monthly?

• Under 10 years: weekly — children cannot yet plan for a whole month.
• From 10 years: monthly — supports long-term planning and budgeting.

Budgetgeld — The Next Step

From around 14–16 years, you can introduce additional Budgetgeld. The child receives a fixed amount for specific expenses such as:

• Clothing
• School supplies
• Phone costs
• Entertainment

Budgetgeld is typically €100–150 monthly (in addition to pocket money) and supports real independence.

Taschengeldparagraph (§ 110 BGB)

The Taschengeldparagraph regulates the legal capacity of minors:

• Children from age 7 can independently make small purchases from their pocket money.
• A purchase is valid if the child immediately and completely pays (e.g., sweets, toys).
• Installment purchases, subscriptions, and online shopping with payment obligations are invalid without parental consent.

Regardless of pocket money, age restrictions apply to certain products (alcohol, energy drinks, games) — youth protection describes these in detail.

Taschengeldkonto, Card and Apps

As the child grows older, it's worth switching from cash to a Taschengeldkonto (pocket money account). Many banks offer free accounts for youth from age 7:

• Sparkasse, Volksbank: pocket money account with a card on balance (with no overdraft option).
• Online banks (e.g., DKB, ING): account from age 7, Visa/debit card from age 14, managed via app.
• Apps and Prepaid-Karte (e.g., banking apps): parent can see expenses and set limits.

What to watch for: account is free, without Dispo (overdraft), with parental overview. This teaches the child about cashless payments, and will be useful in the future for their own account (Girokonto).

Pocket Money Rules

1. Pay on time and regularly — the child must be able to rely on it.
2. Don't reduce as punishment — pocket money is not an educational tool.
3. Don't top up — if the child runs out of money before the end of the month, they learn from their own experience.
4. Don't force saving — the child decides (but motivation is allowed: "If you save €20, I'll add €10").
5. Talk about money — explain prices, advertising, and the difference between want and need.