Allowance is a set amount of money that parents give to their children regularly, often weekly or monthly. It serves as a way for kids to learn about money management, budgeting, and saving. By receiving an allowance, children can make choices about how to spend or save their money, helping them develop financial responsibility. Parents may tie the allowance to specific chores or responsibilities, encouraging children to contribute to household tasks. This practice can also foster discussions about the value of work and the importance of earning money. Overall, an allowance can be a valuable tool for teaching children about personal finance and decision-making.