5 Reasons to Give Kids an Allowance

Having their own money teaches kids about responsibility, consequences, saving, and charity, says Mary Hunt. Anna Nahabed/Shutterstock

At the foundation of your children’s financial intelligence should be this undeniable truth: It is not the amount of money you have but what you do with it that matters.

This is true for a child managing a $5-a-week allowance or a corporate executive with a $5,000-a-week salary.