5 Parents Share the Unwritten Rules of Allowances.

Many families teach children the value of money by implementing allowances. This pseudo-employment scheme can offer kids the chance to understand the concept of working for the things they want rather than waiting for mom or dad to fork over their own hard-earned cash when they feel like it. And allowance can also train kids to be responsible with money—and patient, both key outcomes of delaying monetary gratification. But while these money lessons are essential to financial literacy, parents might be shocked to hear just how varied allowance practices actually are these days.

There is truly no one-size-fits-all approach to allowances. Instead, allowance distribution depends on the money mindset parents hope to instill. Some parents use allowances to get a handle on their kids' behavior and to teach young adults how to be contributing members of a household. Others use allowance to create a predictable family budget that accounts for kids' wants and needs, as well as their investing interests in the future.