The ability to provide a specific amount of money on a regular basis

A notebook for budgeting

A calendar

Optional: a piggy bank or savings account

About 20 to 30 minutes to sit down and work out an initial allowance program

2torial #0520: Learn2 Set an Allowance Show them the money Feeling a little like a cash machine these days? Get the kids off your back and start up an allowance program. With a little planning and flexibility, you'll be well on your way toward escaping those "I'm the bank" blues. You'll also be helping them understand the value of money, as well as how to use it responsibly--knowledge that lasts a lifetime. An allowance can help kids learn to manage money, be responsible, set goals and plan for the future. At the same time, it can provide you with a better grasp on how much your kids really spend. But before you start handing out the cash, consider the following: Why do you want to give an allowance? What goals would you like to achieve? How often will you pay the allowance (weekly, bi-weekly, monthly, etc.)? How much do you think your child needs (and can handle)? What financial habits do you want to pass on to your child? What will you do if your child wants something his or her allowance won't cover? Most kids are ready for an allowance by age five or six, but it's up to you to decide when the time is right. Step 1