The decision of whether and when to give an allowance is your family's personal decision. It is important that the amount, purpose and expectations for how an allowance is to be used are known in advance. Monitor the spending to teach important decision-making lessons.

Once expectations are established, allowances can be used to reward helping with household chores. An allowance can also be used to teach your child the value of money. Learning about budgeting, planning and saving will benefit your child for a lifetime.

Children in this age group are not ready to assume financial responsibility for school supplies, clothing, etc.

The allowance should be used for discretionary items. Consider leaving room for a "raise" for when your child gets older or takes on more responsibilities.