Well, certainly to teach our children how to budget. Children need to learn that there are almost unlimited wants but limited income. They need to learn how to make that balance work for themselves. 

There are three other very good reasons to give our children an allowance: 

1. Their decision making skills
Money decisions are safe places to learn to make decisions and accept the consequences. 

2.The parents’ current budget
I often explain to my clients “Most children will spend unlimited amounts as long as it is yours” — so an allowance helps to keep the parents’ budget in better control 

3.The parents’ future budget
Children who learn how to manage their money early in life are less likely to be adult children looking for bailouts. 

Any comments?