Some financial experts and child psychologists agree that allowances can be a great way for kids to develop good money management skills that can last a lifetime. An allowance teaches a child to carefully consider how much things cost, prioritize wants, and appreciate those things that they purchase with their own money. Allowances can also help children grasp the crucial concept of saving, or "paying yourself first."

While the benefits of an allowance may be clear, the specifics of how to structure one may not be. Here, then, are some allowance basics:

• When to Start an Allowance and How Much to Give
  
  
• Tips for Making the Most of an Allowance