Allowance is money your mom and dad give you. This is money that only you manage. You are in charge of it. But how do you know if you are ready to manage your own money?

Ask yourself these questions:
1. Would you like to have money that only you make choices with?
2. Do you want to buy something that you need to save money for?

If you said yes to these questions, and you used what you have learned about money, then you are ready to manage some money choices on your own.

Allowance is paid on a regular time schedule. You and your parents need to decide on a day and time each week when you will get your allowance. Once your parents give you the money, you will not get anymore until the next payday. Be careful with how you spend your money. If you buy something right away, you may not have enough money for things you need later. You could use your allowance to buy lunch at school on pizza day. But if you decide to bring your own lunch from home, then you can save the money for a video game that you really want.

Sit down with your mom and dad and make a list of a few things that they pay for. Add up how much money they spend on those things, and that will be the amount of money you get for your allowance if you can agree to be responsible for buying those things from now on. Keep your money promises to yourself and to your parents.

It’s OK to make mistakes with your allowance. The best way to learn how to make good choices with your money is to make a few mistakes. When you get older you want to make sure that practice makes perfect.