diff --git a/README.md b/README.md
index 41355ce..e955e6c 100644
--- a/README.md
+++ b/README.md
@@ -1,2 +1,2 @@
 # Allowance Planner 2000
-An improved Allowance Planner app.
\ No newline at end of file
+An improved Allowance Planner app.
diff --git a/backend/api_test.go b/backend/api_test.go
index 940b8c9..68f4708 100644
--- a/backend/api_test.go
+++ b/backend/api_test.go
@@ -492,6 +492,34 @@ func TestGetUserByAllowanceByIdBadAllowanceId(t *testing.T) {
 	e.GET("/user/1/allowance/bad").Expect().Status(400)
 }
 
+func TestPutAllowanceById(t *testing.T) {
+	e := startServer(t)
+
+	// Create a new allowance
+	requestBody := map[string]interface{}{
+		"name":   TestAllowanceName,
+		"target": 5000,
+		"weight": 10,
+	}
+	resp := e.POST("/user/1/allowance").WithJSON(requestBody).Expect().Status(201).JSON().Object()
+	allowanceId := int(resp.Value("id").Number().Raw())
+
+	// Update the allowance
+	updateRequest := map[string]interface{}{
+		"name":   "Updated Allowance",
+		"target": 6000,
+		"weight": 15,
+	}
+	e.PUT("/user/1/allowance/" + strconv.Itoa(allowanceId)).WithJSON(updateRequest).Expect().Status(200)
+
+	// Verify the allowance is updated
+	result := e.GET("/user/1/allowance/" + strconv.Itoa(allowanceId)).Expect().Status(200).JSON().Object()
+	result.Value("id").IsEqual(allowanceId)
+	result.Value("name").IsEqual("Updated Allowance")
+	result.Value("target").IsEqual(6000)
+	result.Value("weight").IsEqual(15)
+}
+
 func getDelta(base time.Time, delta float64) (time.Time, time.Time) {
 	start := base.Add(-time.Duration(delta) * time.Second)
 	end := base.Add(time.Duration(delta) * time.Second)
diff --git a/backend/db.go b/backend/db.go
index 1a1fcd8..e171cdf 100644
--- a/backend/db.go
+++ b/backend/db.go
@@ -160,6 +160,33 @@ func (db *Db) DeleteAllowance(userId int, allowanceId int) error {
 	return nil
 }
 
+func (db *Db) UpdateAllowance(userId int, allowanceId int, allowance *UpdateAllowanceRequest) error {
+	// Check if the allowance exists for the user
+	count := 0
+	err := db.db.Query("select count(*) from allowances where id = ? and user_id = ?").
+		Bind(allowanceId, userId).ScanSingle(&count)
+	if err != nil {
+		return err
+	}
+	if count == 0 {
+		return errors.New("allowance not found")
+	}
+
+	tx, err := db.db.Begin()
+	if err != nil {
+		return err
+	}
+	defer tx.MustRollback()
+
+	err = tx.Query("update allowances set name=?, target=?, weight=? where id = ? and user_id = ?").
+		Bind(allowance.Name, allowance.Target, allowance.Weight, allowanceId, userId).
+		Exec()
+	if err != nil {
+		return err
+	}
+	return tx.Commit()
+}
+
 func (db *Db) CreateTask(task *CreateTaskRequest) (int, error) {
 	tx, err := db.db.Begin()
 	if err != nil {
diff --git a/backend/dto.go b/backend/dto.go
index e305014..78f75f6 100644
--- a/backend/dto.go
+++ b/backend/dto.go
@@ -44,6 +44,12 @@ type CreateAllowanceRequest struct {
 	Weight int    `json:"weight"`
 }
 
+type UpdateAllowanceRequest struct {
+	Name   string `json:"name"`
+	Target int    `json:"target"`
+	Weight int    `json:"weight"`
+}
+
 type CreateGoalResponse struct {
 	ID int `json:"id"`
 }
diff --git a/backend/main.go b/backend/main.go
index 3260856..16b20a3 100644
--- a/backend/main.go
+++ b/backend/main.go
@@ -232,6 +232,52 @@ func deleteUserAllowance(c *gin.Context) {
 	c.IndentedJSON(http.StatusOK, gin.H{"message": "History deleted successfully"})
 }
 
+func putUserAllowance(c *gin.Context) {
+	userIdStr := c.Param("userId")
+	allowanceIdStr := c.Param("allowanceId")
+
+	userId, err := strconv.Atoi(userIdStr)
+	if err != nil {
+		log.Printf(ErrInvalidUserID+": %v", err)
+		c.JSON(http.StatusBadRequest, gin.H{"error": ErrInvalidUserID})
+		return
+	}
+
+	allowanceId, err := strconv.Atoi(allowanceIdStr)
+	if err != nil {
+		log.Printf("Invalid allowance ID: %v", err)
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Invalid allowance ID"})
+		return
+	}
+
+	exists, err := db.UserExists(userId)
+	if err != nil {
+		log.Printf(ErrCheckingUserExist, err)
+		c.JSON(http.StatusInternalServerError, gin.H{"error": ErrInternalServerError})
+		return
+	}
+	if !exists {
+		c.JSON(http.StatusNotFound, gin.H{"error": ErrUserNotFound})
+		return
+	}
+
+	var allowanceRequest UpdateAllowanceRequest
+	if err := c.ShouldBindJSON(&allowanceRequest); err != nil {
+		log.Printf("Error parsing request body: %v", err)
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Invalid request body"})
+		return
+	}
+
+	err = db.UpdateAllowance(userId, allowanceId, &allowanceRequest)
+	if err != nil {
+		log.Printf("Error updating allowance: %v", err)
+		c.JSON(http.StatusInternalServerError, gin.H{"error": ErrInternalServerError})
+		return
+	}
+
+	c.IndentedJSON(http.StatusOK, gin.H{"message": "Allowance updated successfully"})
+}
+
 func createTask(c *gin.Context) {
 	var taskRequest CreateTaskRequest
 	if err := c.ShouldBindJSON(&taskRequest); err != nil {
@@ -439,6 +485,7 @@ func start(ctx context.Context, config *ServerConfig) {
 	router.POST("/api/user/:userId/allowance", createUserAllowance)
 	router.GET("/api/user/:userId/allowance/:allowanceId", getUserAllowanceById)
 	router.DELETE("/api/user/:userId/allowance/:allowanceId", deleteUserAllowance)
+	router.PUT("/api/user/:userId/allowance/:allowanceId", putUserAllowance)
 	router.POST("/api/tasks", createTask)
 	router.GET("/api/tasks", getTasks)
 	router.GET("/api/task/:taskId", getTask)