Instead, they learn by example and experience.
Parents often assume children learn to manage money by osmosis.
Preteens need to learn by trial and error, and they need your guidance. An allowance is one way to help your preteen gain experience in handling money. Making decisions about how money should be spent is a step toward becoming more independent. Some parents may think they cannot afford to provide an allowance, but one way to set an appropriate amount is to keep a record of the money given to the child each week for lunches, other school expenses and entertainment. This amount can then be given as the allowance.