Are trips to the grocery store filled with constant “Gim-mes” from your child? If the answer is yes, then it may be time to provide your child with an allowance.

An allowance will help your children learn patience, discipline and money management skills that will last a lifetime. It will help them appreciate that the supply of money is not endless and that choices must be made.

How much allowance you pay is up to you. Some people provide their kids with one dollar of allowance for every year of age. Others estimate how much they routinely spend on extras like slurpees and bubble gum, and to use that figure to set an appropriate allowance.

Whatever method you choose, it is important to sit down with your child and explain how much the allowance will be and what it is to be used for. Discuss how much of the allowance is to be saved or put towards charitable donations. Will your child be expected to pay for their friend’s birthday gifts out of their allowance or is this something you will continue to do?

Discuss money your child may receive from other sources and how it is to be handled. Will you allow your child to spend all of their birthday money or will you require them to save a portion? Talk about extra curricular activities like movies and videos and who will pay for them.

You may want to encourage your child to track their spending. A spending journal will help kids see how much they earned, where it went and how much they’ve saved, if anything. Don’t be surprised if your child saves little, or saves their entire allowance and then spends it on something you consider frivolous. It is their money to spend on whatever they choose as long as the purchase is safe, appropriate and legal.

Most financial experts recommend against paying kids for the regular chores they do around the house or tying an allowance to those chores. It is important for children to learn that they are part of a family and that basic chores are something that every member of the family is expected to do.

You may want to consider paying your child for extra chores, however, especially if your child is saving for something important. Allowing kids to earn extra money to buy things they really want teaches them to save for what they want to and to work hard for things they desire.