Friends, we started paying our 6-yr.-old an allowance of $1/ week when she turned 6. I put no guidelines on how she spent the money, but rather, used the first six months as a sort of test period. Well, she spent it all on ridiculous things like silly bands, temporary tatoos and sticker albums. All of it. I think the most she ever saved was $4. I wanted her to have the freedom to make mistakes … well at least I thought I wanted her to have that freedom. It made me too frustrated to watch. So now, at 6.5, I changed the parameters. I increased her allowance to $1.50, and she is only allowed to spend .50 of the amount. She must put .50 in the collection basket at Church and she must save the remaining .50. It is the whole save/share/spend philosophy. It isnn’t mine, I think it was probably on Oprah first or something.