North Dakota State University NDSU Extension Service

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Allowances

Where Does Money Come From?

Have you ever thought about where money comes from? Wouldn’t it be fun if money grew on trees and you could pick all you wanted? Your mother, father or guardian must work for the money they spend and the money they give you.

Where do you get your money? Some boys and girls get money from parents or guardians, working, gifts or an allowance.

What Is an Allowance?

An allowance is a set amount of money a child receives regularly, generally from a parent or guardian. Usually the parent and child decide together on the amount of the allowance. They also decide how the money can be spent. Children can count on getting the money. They also can plan for using this money.

Learning With an Allowance

When you have money of your own, you must make choices on how to spend it. You must know that once you spend the money, you won’t have more. Sometimes you may make mistakes in how you handle money. Remember that this is all part of learning to manage money.

Boys and girls who receive an allowance should plan how to use the money. This can be fun. It can help you get those things you want. Good planners use money for sharing, saving and spending.

Having an allowance is a good way for you to learn how to keep records. Records show how you have used your money.

Your record should help you see if you’re spending money in ways you really want to spend it. A record also can help your parents decide if your allowance is the right amount for you.

Suggested Activities

1. Ask your parent or guardian to help set up a spending plan which includes money for sharing, saving and spending.
2. Talk to your parent or guardian about receiving an allowance or an amount of money that you would be responsible for managing.
3. Make a list of expenses that you must take care of with your money, and then keep a record of how you use the money. (Look in the issue titled, “Keeping Track Of Your Money” for an example of a record of income and spending.)

NDSU Extension Service, North Dakota State University of Agriculture and Applied Science, and U.S. Department of Agriculture cooperating. Duane Hauck, director, Fargo, N.D. Distributed in furtherance of the acts of Congress of May 8 and June 30, 1914. We offer our programs and facilities to all people regardless of race, color, national origin, religion, sex, disability, age, Vietnam era veterans status or sexual orientation; and are an equal opportunity employer.
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North Dakota State University
NDSU Extension Service