Should I Give my Child an Allowance?

Most financial planners agree that getting your kids on an allowance trains them to be more responsible about money later on in their lives. Letting your children handle money that’s supposed to last them for a period of time gives them a certain air of independence and allows them to learn how to spend more wisely, as opposed to having them depend on you for all their purchasing decisions. A smart way to give them more confidence in managing their own finances is to complement the allowance with a “reward” system – they get additional allowance money on occasions when they have done something good, whether it be a household chore done well or a good academic performance.