AllowanceMany children first learn the value of money by receiving an allowance.The purpose is to let children learn from experience at an age when financial mistakes are not very costly.The amount of money that parents give to their children to spend differs from family to family.Timing is another consideration.Some children get a weekly allowance.Others get a monthly allowance.In any case, parents should make clear what, if anything,the child is expected to pay for with the money.At first, young children may spend all of their allowance soon after they receive it.If they do this, they will learn the hard way that spending must be done within a budget.Parents are usually advised not to offer more money until the next allowance.The object is to show young people that a budget demands choices between spending and saving.Older children may be responsible enough to save money for larger costs.
