This paper delineates a conceptual scheme of children's allowances, characterizes the underlying parental rationales, and describes the mechanism of children's economic socialization. The origin, meaning, purpose, conditions, and types of allowances, as well as the diversity of family philosophies on children's money are examined. The professional perspective on allowances is reviewed, and recommendations for potential financial lessons are offered.
Key Words: Adolescent spending, Allowances, Children and money, Economic socialization.

1. M. J. Alhabeeb, Associate Professor, Department of Consumer Studies, University of Massachusetts, Amherst, MA 01003. Phone: 413-545-5010. Fax: 413-545-4410. E-mail: mja@constudy.umass.edu