Allowance Taught Creative Budgeting
Allowances taught creative budgeting and money management, not just having pocket money for chores done.
When I was young (a lot of years ago), I was given money on Saturday mornings. When I look back on it, I believe the money was given strictly for the chores done on Saturday mornings, which helped out my parents while they ran our family business.
I was expected to put laundry in the dryer, fold it and put it away. I had to clean my bedroom thoroughly, and tidy our living room. The money was given after I was finished doing those chores, and was meant for my spending on the weekend. I don't think my parents meant it to last me for the entire week, as they paid for extra necessities. Allowance was given for "Saturday" spending after Saturday chores were done.
With my own daughter, she got money given to her on the weekend, which was a much larger amount, of course, and took into consideration what she might want during the week in terms of the extra foods at school. She was certainly expected to do chores, and if she needed something else, I paid, but that wasn't the main reason I gave her the money. I expected her to actually think about spreading it out, and making it last. In other words, she was quite free to spend it all in one day, but if she did that, she would have nothing more until the following week.
The reason for this? The schools provided all kinds of extras, like pizza for example, something I never had. My daughter had a lunch, of course, but she had to decide if the pizza would be a treat or an everyday thing. She had to decide if she could afford the everyday trip outside the school for a hamburger and fries with friends, or make it a "treat" once in awhile. She had the means to do either one, which I hoped would make her think about saving and priorities.
In this way, she learned creative budgeting and decision-making, and overall, it worked out well in teaching her money management skills.