The Values of an Allowance

Most children today are receiving allowances from their parents. Allowances can be used to buy everything from candy to books. More importantly however, it can also teach children valuable financial lessons that can last a lifetime. Read on to learn more about the value of an allowance.

Find available tutors

Many parents give their children money weekly, biweekly, or monthly for a variety of reasons. Many parents use an allowance as an incentive for their children to complete chores or do well in school, but there is more value behind this pocket money. Children who earn allowances are learning valuable math skills such as budgeting and saving.

Adults must learn how to regulate their money and budget for all of their weekly and monthly expenses so they will not overspend. These are skills that are not taught in the typical math classroom, so it is often up to parents to pass these concepts onto their children.


When you start to give your children an allowance it is smart to discuss with them the value of saving money. Even if you give your children very small amounts of money, encourage them to save a certain amount of their allowance each month.

Many banks offer free savings accounts for children. These accounts require a parent's signature in order for the child to withdraw money, so you are able to observe and regulate what type of items your child is buying. Savings accounts offer practical math lessons because they give children practice in addition and subtraction, as well as the multiplication that is involved with interest. An older child can also be taught the concept of percentages with their interest rate. It is fun for children to see how they are saving money and that small amounts of money will create large sums overtime.


If you notice that your children spend their allowance on soda and candy and then later beg for a toy or other item that they 'can't live without!' then this is an excellent opportunity to discuss with them the importance of creating a budget.

Explain to your child that their allowance is supposed to last them until their next 'pay-day'. If there is a toy or treat that they really want but costs more than their monthly allowance, teach them how to budget their money so they can save a certain amount each month. Allow your child to help you create a weekly budget of the family's expenses, and then a weekly budget for their allowance. Over time they will appreciate this lesson, especially when the time comes for them to buy gas for their car or books for college!

Did you find this useful? If so, please let others know!

Other Articles You May Be Interested In

  • More Blog Articles
    How to Help Your Child Read Above Their Grade-Level

    Reading is important in our daily lives and is a cornerstone in all other academic subjects, including math and science. Do you want your child to not only succeed in reading but to excel beyond their (and possibly your) expectations? There are some things you can do to help your child improve their reading skills and maybe even...

  • More Blog Articles
    5 Creative Ways to Celebrate Read to Your Child Day

    February 14th is not only Valentine's Day, it's also Read to Your Child Day, an occasion to celebrate reading with your child. Here are five ideas for how you can observe this special day.

We Found 7 Tutors You Might Be Interested In

Huntington Learning

  • What Huntington Learning offers:
  • Online and in-center tutoring
  • One on one tutoring
  • Every Huntington tutor is certified and trained extensively on the most effective teaching methods
In-Center and Online


  • What K12 offers:
  • Online tutoring
  • Has a strong and effective partnership with public and private schools
  • AdvancED-accredited corporation meeting the highest standards of educational management
Online Only

Kaplan Kids

  • What Kaplan Kids offers:
  • Online tutoring
  • Customized learning plans
  • Real-Time Progress Reports track your child's progress
Online Only


  • What Kumon offers:
  • In-center tutoring
  • Individualized programs for your child
  • Helps your child develop the skills and study habits needed to improve their academic performance
In-Center and Online

Sylvan Learning

  • What Sylvan Learning offers:
  • Online and in-center tutoring
  • Sylvan tutors are certified teachers who provide personalized instruction
  • Regular assessment and progress reports
In-Home, In-Center and Online

Tutor Doctor

  • What Tutor Doctor offers:
  • In-Home tutoring
  • One on one attention by the tutor
  • Develops personlized programs by working with your child's existing homework
In-Home Only


  • What TutorVista offers:
  • Online tutoring
  • Student works one-on-one with a professional tutor
  • Using the virtual whiteboard workspace to share problems, solutions and explanations
Online Only

Our Commitment to You

  • Free Help from Teachers

  • Free Learning Materials

  • Helping Disadvantaged Youth