Written by Todd Wenzel, Financial Education Associate Extension Educator.

The goal of an allowance is to help children become comfortable with making basic money decisions, such as comparing smaller versus larger amounts and how one decision can affect many other decisions.

Read the fact sheet:

• Español – Mesadas (PDF, 2 pp, 412 KB)

References

1. Jones, Sheree and Hayhoe, Celia Ray (2009) Kid’s Allowance, Virginia Cooperative Extension, Children and Family Finances
   https://www.pubs.ext.vt.edu/content/dam/pubs_ext_vt_edu/2912/2912-7042/2912-7042_pdf.pdf
2. Collins, J. Michael (2013) New Strategies for Financial Education for Preschool Aged Children and Families, University of Wisconsin-Extension Cooperative Extension, Issue Brief 2013-10.
   https://fyi.extension.wisc.edu/financialseries/files/2013/10/New-Strategies-for-Financial-Education.pdf
3. Danes, Sharon M. (2013) Children and Money Allowances and Alternatives, University of Minnesota Extension.
   https://extension.umn.edu/personal-finances/youth-and-money