Although I don't have children, I have always been interested in teaching about money and the effects that parents and their spending/saving habits have on children.
I'm trying to locate a recent article I read about kids and allowances. It discussed how we should drop the word 'allowance', and start calling it a 'salary'. One that is EARNED by jobs, and that is subject to housing expenses, and that must cover necessities. (I read so many I have no idea where it was from..maybe here!) Anyhow, here is another pretty good one:
http://moneycentral.msn.com/content/...ids/P75981.asp
The main points in this one are that weekly allowances for discretionary purchases may not be best.
Larger, more spread out allowances that must include some basics (like clothing, etc) have the ability to teach more lessons. Afterall, what percentage of OUR incomes really go toward such "fun" items?!?!?! I wish!
Kids might not enjoy learning about finances at school...if we even had that available to any significant degree, but they are very motivated to learn about things that affect them directly. If a child gets an allowance bi-weekly or monthly, all of a sudden they will be encouraged (forced) to learn about budgeting. And perhaps savings as well.