Parents are always going to struggle and fight with children over allowances.  Nevertheless, stop and consider when you think about pulling the allowance plug exactly what you are teaching your child with an allowance, they are learning much more than how to drive you crazy.  You are instilling life long skills about proper money management, it might take a while to recognize the skills without having to crack the whip on your child, but it will eventually happen. 

Reason #1.  You will no longer be footing all of the bills for your child, while technically it is still your money; it becomes their money after they have earned their allowance.  Giving your child an allowance gives them a chance to learn how to manage money themselves; especially if once you create an allowance, you make them stick to it. 

Reason #2.  Budget skills are learned.  If your child has a budget, then they must learn how to spend within that budget.  Children who learn at young ages about budgets tend to be much more responsible with credit later on in life. 

Reason #3.  Credit matters.  If you are willing and able to give your child some opportunities to learn about credit on your terms, and at a pace that is acceptable to them you can help your choice avoid devastating credit mistakes when they are out on their own.  While this does not mean you should allow your child free range over their allowance, an occasional loan should be considered.  If you do make a loan to your child, you should set an interest rate as well as payment plan so the debt can be repaid. 

Reason #4.  Balancing a Checkbook and saving money are vital lessons that should be taught way before your child leaves the nest.  Many parents invest in a program where their child has to write a “check” to get money from their allowance in order to have cash.  Otherwise, the money is held by the parents, this method helps parents easily teach children how to balance a checkbook.  Parents can either purchase a checkbook system, or they can create their own, depending upon how much effort they wish to put into it. 

Reason #5.  Children just enjoy having their own money and not having to ask for it.  Unlike what all parents think, they do not enjoy having to hound the nearest parent who is standing around with a wallet in order to get a few bucks for a snack or go to a school football game.  Having their own money is often seen as a sign of independence, much like having a job is another step towards independence.  You should view an allowance as preparing your child to properly handle their own money from a job once they are out on their own. 

Parents are always free to determine how much to give for an allowance, as well as what chores should be attached to the allowance.  Other decisions that should be made are what age to start the allowance, as well as what if any loans will be considered.  One of the last major points of argument between parents and children is exactly what the allowance should cover in expenses, while most parents agree that snacks, football games, and frills like extra clothes and make-up should be included many other parents are split over issues like car insurance, cell phone bills and even extra-curricular activity fees.  You should discuss the issues with your child and make the decision that is best for you and your family.