Now they're old enough to get into more sophisticated discussions about fact and opinion. They will spend unlimited amounts if it's yours, but when their cash is on the line, you'll be surprised at how tightfisted they are. Many parents end up handing over the money even if their children don't do the work, so the system falls apart. For example, you might require them to pay for their own video games, movie tickets or snack foods. As I write this, I'm looking at Monopoly and a stack of other games that my children and I have played, plus a few new ones we haven't gotten around to yet.
Games bring family members together for fun while giving kids a painless lesson in personal finance.
It doesn't hurt to buy your kids some things other kids have, but don't feel obliged to buy them everything. Now that they have an allowance, you can compromise. Kids can accept differences among families if they understand their own family's values and circumstances, and if they feel they're getting a fair hearing. They will have to pay for their own Pok mon cards, movie tickets, snacks or other expenses. They should be able to navigate a supermarket with a cart and a list, and bring home a bargain or two.