you as a parent. in giving them an allowance, you are teaching them to learn to handle money on their own; but you must apply some rules. just as when they were little, and you gave them time-out based on their age, you can use the same rules for giving them an allowance. you must explain to them that while an allowance is their personal money, it is also a privilege. you must let them know about your expectations of how this money should be managed. your expectations should be along the lines of spending, saving, (long and short-term) and giving. the concept of giving back is a critical aspect 