Can an allowance work for families?

An allowance can be an effective tool for families when used strategically. According to Jonathan Mendosa, the concept of an allowance should be to provide money to children consistently, regardless of behavior. This approach can help teach kids money management and the value of money early on.

It's important to establish a routine, such as a regular payday, so children learn to count on a steady income. This routine builds credibility and helps children understand financial concepts, like saving for larger goals. Allowance usage evolves into lessons about budgeting as kids realize that their wants often exceed their initial means, teaching them the value of saving over time 1.