How Kids Ages 6-12 Make Money in 2026: Allowance Stats, Rules, and a Weekend Plan

Kidpreneur Statistics 2026: Kids Entrepreneurship Data Parents and Educators Cite Reading How Kids Ages 6-12 Make Money in 2026: Allowance Stats, Rules, and a Weekend Plan 14 minutes
By My Lil Startup 0 comments
Tags
Share

Kids making money in 2026 at a glance: 58% of U.S. parents of kids ages 5 to 8 and 79% of parents of kids ages 9 to 11 give an allowance regularly or occasionally (Wells Fargo / Ipsos, survey fielded Apr 28 to May 8, 2025). The median weekly allowance is $15 for ages 5 to 8 and $20 for ages 9 to 14 (same survey).

This page is for parents of kids ages 6-12. Most kidpreneur statistics cover teens and young adults; for those, see our full kidpreneur statistics hub. Here we focus on the data that actually describes younger kids, the rules parents ask about, and a simple way to turn a weekend into a first business.

Where do kids ages 6-12 get money today?

For most younger kids, money arrives as an allowance, not as earnings. In a Wells Fargo survey of 1,587 U.S. parents with data collection by Ipsos (Apr 28 to May 8, 2025):

  • 71% of parents of kids ages 5-17 give an allowance regularly (43%) or occasionally (28%).
  • Ages 5 to 8: 58% (33% regularly + 25% occasionally).
  • Ages 9 to 11: 79% (50% regularly + 29% occasionally), the highest of any age band.
  • Median weekly allowance: $15 for ages 5 to 8, $20 for ages 9 to 14.
  • Cash is still the top form: 73% of parents who give an allowance use cash, and 24% use peer-to-peer apps.
  • 29% of parents raised the allowance in the past year because of inflation.

Source: Wells Fargo / Ipsos, Public Release Survey Findings and Methodology, May 28, 2025; Wells Fargo press release, Jul 2, 2025.

Other surveys, with their own age bands:

  • 79% of parents of kids ages 8 to 14 give an allowance, and 64% of parents say their child has to earn it (T. Rowe Price, 2022).
  • Among parents who give one, the average weekly allowance for kids ages 8 to 14 was $19.39; 35% gave $11 to $20 a week (T. Rowe Price, 2022).
  • Among U.S. 15-year-olds, 86% received gifts of money from friends or relatives at least once a year, and 50% received an allowance or pocket money at least once a year without having to do any chores (OECD, PISA 2022 financial literacy).
  • 49% of U.S. 15-year-olds hold an account with a bank or credit union, compared with 63% on average across OECD countries. 52% hold a payment or debit card, up from 14.3% in 2012 (OECD, PISA 2022).
  • 91% of U.S. 15-year-olds bought something online, alone or with a family member, in the 12 months before the test, compared with 86% across OECD countries (OECD, PISA 2022). (These are teens, not younger kids.)

Money rewards beyond allowance (2026). A 2026 Wells Fargo survey of 1,500 U.S. parents of kids ages 6 to 17, with data collection by Ipsos (Apr 2 to Apr 15, 2026), looked at money given as a reward rather than as an allowance:

  • 73% of U.S. parents of kids ages 6 to 8 and 78% of parents of kids ages 9 to 11 say they have given their child extra money as a reward, beyond any allowance (72% across ages 6 to 17) (Wells Fargo / Ipsos, Apr 2026).
  • The most common reason is a good report card or a high mark on an assignment (51%), followed by good behavior for a babysitter or caregiver (24%), sticking with an extracurricular activity (22%), and meeting a savings or financial goal (20%) (Wells Fargo / Ipsos, Apr 2026).
  • 82% of parents of kids ages 6 to 17 agree that "a money reward helps my child understand the concept of what it means to earn," and 76% agree money rewards help instill a positive work ethic (Wells Fargo / Ipsos, Apr 2026).
  • Cash is still the top reward: 82% of parents who give money rewards use cash. Peer-to-peer apps are used for 16% of kids ages 6 to 11, compared with 36% of kids ages 12 to 17 (Wells Fargo / Ipsos, Apr 2026).

What do parents want kids to learn about money?

The same survey shows parents want hands-on practice, and many find it hard to give it:

  • 90% agree that "financial independence begins with small, supervised choices during childhood."
  • 85% agree that giving kids an allowance helps them learn to budget and prioritize spending.
  • 65% say it is hard to step back and let their kid make their own mistakes with money.
  • 63% often struggle to get their kid to understand the difference between needs and wants.
  • 32% are uncomfortable talking with their kid about money.

Other parent and kid surveys point the same way:

  • 88% of U.S. parents say it is extremely (50%) or very (38%) important to them that their children be financially independent as adults (Pew Research Center survey of 3,757 parents, Sep 20 to Oct 2, 2022).
  • 94% of parents of kids ages 8 to 14 say it is important to talk with their child about earning money, but only 60% say they do it frequently or always (T. Rowe Price Parents, Kids & Money Survey, Jan to Feb 2022).
  • 90% of kids ages 8 to 14 say their parents talk with them about earning their own money (42% very often, 48% sometimes); 10% say never (T. Rowe Price, 2022).
  • When kids ages 8 to 14 want money advice, 75% say they would go to a parent, far ahead of other family members (25%), friends (20%), or teachers (20%) (T. Rowe Price, 2022).
  • 83% of U.S. 15-year-olds say they talk with their parents at least once a month about money for things they want to buy (OECD, PISA 2022 financial literacy, published 2024).
  • 87% of U.S. 15-year-olds say they can decide on their own what to spend their money on, compared with 83% on average across OECD countries (OECD, PISA 2022).

What schools teach about money:

  • 39 states now require students to take a course in personal finance to graduate, 4 more than in 2024 (Council for Economic Education, 2026 Survey of the States).
  • 30 states now require a standalone personal finance course to graduate from high school. 35% of public high schoolers in the Class of 2026 had to take one, up from 30% for the Class of 2025 (Next Gen Personal Finance, 2026 State of Financial Education Report). NGPF counts standalone courses only, so its total differs from the CEE count above.
  • Once all 30 states fully implement their requirements, 76% of public high school students in the Class of 2031 will take personal finance (NGPF, 2026 report projection).
  • New laws passed in 12 states in 2022 and 2023 will give more than 10 million additional K-12 students (about 21% of current students) guaranteed access to personal finance education (Council for Economic Education, 2024).
  • 75% of U.S. 15-year-olds say they learned about a budget in school in the past year and still know what it means, but only 22% say the same about compound interest (OECD, PISA 2022).
  • U.S. 15-year-olds averaged 505 points in PISA 2022 financial literacy, not significantly different from the OECD average of 498, and 17% did not reach the baseline proficiency level (OECD, 2024).
  • Among U.S. adults, 19% say they took part in financial education at a school, college, or workplace, and 65% say none was offered. 58% of those who took part answered at least 4 of 7 financial literacy questions correctly, compared with 44% of those who did not; FINRA notes this does not prove cause (FINRA Investor Education Foundation, National Financial Capability Study, 2024 data, July 2025). (These are adults, not kids.)

From allowance to earned money

An allowance teaches spending. Running a tiny business teaches where money comes from: making something, setting a price, talking to a customer, and counting what is left after supplies. That is the "small, supervised choice" 90% of parents in the survey say they believe in, with a real result at the end of the weekend.

When kids start earning: what the data shows

  • By age 15, 42% of U.S. students had earned money from work outside school hours and 45% from occasional informal jobs such as babysitting (OECD, PISA 2022). (These are teens, not younger kids.)
  • 14% of Gen Z Americans ages 12 to 26 list starting their own business among their top three hopes for the future; among those still in K-12 it is 16% (Gallup and Walton Family Foundation, Voices of Gen Z, Apr to May 2023).
  • Earning enough money to live comfortably is the top hope for Gen Z: 69% put it in their top three, 72% of K-12 students (Gallup and Walton Family Foundation, 2023).
  • 35.5% of U.S. teens ages 16 to 19 held a paying job for at least part of summer 2026, up from 33.8% in 2025. At the peak in 1978, 58% did (Pew Research Center, Aug 19, 2026).
  • Older teens are far more likely to work: the summer 2026 employment rate averaged 48% for 18- and 19-year-olds and 24% for 16- and 17-year-olds (Pew Research Center, Aug 19, 2026).

This is general information, not legal or tax advice. Check your state's rules too, since the stricter law applies.

  • Federal child labor rules: The U.S. Department of Labor says children under 14 years of age may not be employed in non-agricultural occupations covered by the Fair Labor Standards Act (FLSA). It also says children may do work not covered by the FLSA, such as minor chores around private homes or casual babysitting, and that children of any age are generally permitted to work for businesses entirely owned by their parents (with limits on hazardous work). (U.S. DOL Wage and Hour Division, Fact Sheet #43, revised Dec 2016.)
  • Federal tax threshold: The IRS says you must pay self-employment tax and file Schedule SE if net earnings from self-employment were $400 or more, and that "the self-employment tax rules apply no matter how old you are." The self-employment tax rate is 15.3%. (IRS, Self-employment tax page.) A small weekend stand usually stays far below $400 in net earnings, but keep a simple record of sales and supply costs either way.
  • Work hours at 14 and 15: Looking ahead: at 14 and 15, kids can be employed in many non-hazardous jobs, but for jobs covered by the FLSA, federal rules cap work at 3 hours on a school day and 18 hours in a school week (8 hours on a non-school day, 40 in a non-school week), between 7 a.m. and 7 p.m. (9 p.m. from June 1 to Labor Day) (U.S. DOL, Fact Sheet #43).
  • Filing threshold for dependents: For taxes, a single dependent generally must file a 2025 federal return if earned income was more than $15,750, separate from the $400 self-employment tax rule above (IRS, Publication 501, 2025). Ask a tax professional about your situation.

Youth business programs for younger kids

Lemonade Day, a nonprofit program that walks kids through setting up a lemonade stand, reports serving 1.5 million+ kids since 2007 across 97 communities in 2 countries (lemonadeday.org, Our Impact page, accessed Oct 13, 2026; page undated). Treat this as program reach, not a count of kid-owned businesses.

A weekend money plan for ages 6-12

  1. Friday: pick one product. Something the child can make safely with an adult nearby.
  2. Friday: set one price. Keep the math simple for the child to do on their own.
  3. Saturday: make a small batch and count supply costs before selling.
  4. Saturday or Sunday: sell to family, neighbors, or at a permitted event, with an adult present.
  5. Sunday night: count it up. Example math: 20 sales x $5 = $100 in sales. Then subtract what the supplies cost to see the profit, and decide together how much to spend, save, and share.

No promise of earnings here. Some weekends sell out and some do not; both teach something.

Practice product

Slime is one easy product for a first weekend because kids can make it, price it, and explain it. Our kit is built for ages 6-12 to practice the steps above. https://mylilstartup.com/products/kids-slime-business-kit

FAQ

What percent of parents give young kids an allowance?

58% of parents of kids ages 5 to 8 and 79% of parents of kids ages 9 to 11 give one regularly or occasionally (Wells Fargo / Ipsos, Apr 28 to May 8, 2025).

How much allowance do kids ages 6-12 get?

The median weekly allowance is $15 for ages 5 to 8 and $20 for ages 9 to 14 (Wells Fargo / Ipsos, 2025).

Does my child need to pay taxes on a small business?

The IRS self-employment tax filing rule starts at $400 or more in net earnings from self-employment, and it applies regardless of age (IRS). Ask a tax professional about your situation.

Sources

Jon Carder, co-founder of My Lil Startup

About the Author

Jon Carder is the co-founder of My Lil Startup along with his daughter Chloe. Jon has founded seven companies, hired hundreds of employees, raised over $100 million in venture capital, and had five successful exits. But it all started at age 10 with a hot dog stand in front of his parents' house. Now, alongside Chloe, he's helping kids all over the country launch slime stands in front of their own houses because Chloe loves slime more than hot dogs. Today, Jon’s bringing all those entrepreneurial lessons to kids around the world, one slime stand at a time. Learn more about Jon.

Continue reading

Kidpreneur Statistics 2026: Kids Entrepreneurship Data Parents and Educators Cite

Leave a comment

All comments are moderated before being published.

This site is protected by hCaptcha and the hCaptcha Privacy Policy and Terms of Service apply.