<prompt> Human: I was browsing this thread a few months ago and some user was describing how to teach kids to manage their money by operating as a bank technically. The parents gave their kids money for chores and then let them save it or they could take out a loan if they couldnt buy something right away as well as a few other things. Could anyone give me an explanation of how that might work?  <response>: We got an allowance staring about 7. it was not tied to chores or grades. Those were expected as being part of the household or doing well at our job.my dad was paid monthly. When we got to HS we were given a healthy allowance once a month. this was to cover our school lunches, gas for the car and fun. if we needed more that month it was a loan and needed to be paid back the following month.at the beginning of the school year we were given a certain amount of month on paper for clothes for the school year. This did not included winter coats, shoes or athletic gear. We had to figure out how to budget our clothes money to last the entire year. if we needed more it came from our allowance. To be fair, we did get clothes for Xmas, so that helped. I hated it as a teen. All my friends could nickel and dime their parents. even double dipping by getting cash from both parents without the other knowing. not my family. I was jealous.When I went out on my own I realized my parents better prepared me for real life than my friends. I knew how to budget. They didnt. 