IndexThe concept of “allowance”The advantages of letting your children manage money1. The allowance teaches children the value of money2. The allowance can teach your child the importance of financial decisions3. The allowance can cause your child to make financial mistakesThe cons of giving your child his or her money1. The allowance can communicate the wrong lessons2. Compensation can cost you so much.3. Allowance can be another parenting task that needs to be handled thoroughly OTHER SOURCES: Money can't buy you happiness but you can't survive without it either. This is why it is very important for us to be properly educated when handling money. As we reach adulthood, more responsibilities arise and budgeting becomes as important as surviving. But at what age should we know the basics of money management? Can we all agree that children should know the importance of financial management from an early age and that parents should give them child allowances? Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The concept of "allowance" The concept of financial management differs from one culture to another. For example, in the article titled “6 Financial Expectations in Asian Families” published on the Frugal Asian Finance website, it is mentioned that Asian children should support their parents after they graduate and get jobs. They have been introduced to a culture where children feel strongly obligated to repay what their parents have done for them when the time comes. This statement parallels what researchers at the University of Arizona found when they studied cultural differences in parenting practices among Asian-American families. The finding suggests that families have a great impact and contribution to how Asian children decide in terms of financial aspects. Asian parents support their children and give what they need, including allowances, even if they can barely make it through the day. Meanwhile, the concept of compensation is different for families leaving in the western part of the world. Websites like The Washington Post, CNBC International, and US News all reported that the concept of allowances meant two things to Americans; 1.) it is the payment children receive for doing wonderful tasks and 2.) it is the money they can use to buy whatever they want. With these applied concepts of allowance, parents expect their children to learn the value of money. However, it turned out that the check is not as common as expected in America. In a survey conducted by CreditCards.com, only 40% of American children under 18 receive child support from their parents. In an interview with the Washington Post, Ted Rossman, an industry analyst for CreditCards.com, said he was surprised by the survey result. 61% of these children receive the allowance in cash, while 10% of parents distribute the allowance to their children via mobile applications. The survey also found that families with higher gross incomes are more likely to teach their children financial lessons. However, only 1 in 4 Americans said they received no financial lessons from their parents. Is it worth trying to let our children manage their own money? Let's weigh the pros and cons. The Benefits of Letting Your Children Handle Money In an article published in US News and World Report, Susannah Snider cited Jayne A. Pearl, co-author of the book "Kids, Wealth, and Consequences," as