What it the proper age for children to handle money?

My kids do plan what they want to get from their savings. Each have their own money depending on their needs, the older one got a higher amount because she pays for most of her requirements in school and she's getting it from her savings. The younger one gets a minimal amount, only good to buy drinks or candies because she could always asked my husband to buy for her. But she always carries that small amount just in case she needs something and her dad is not around. Yesterday, she bought small present from the school fair and she was very proud of it. She kept on asking if her cousin would be happy for the small doll she bought for her birthday. And she was indeed very happy as my sister told me.

r3jcorp -- I am happy to note that you and your husband have guided properly the children. You are also right in giving more for the elder daughter since she needs more money for her food and day to day needs. We should set a limit and monitor indirectly by asking them what did you eat? did you spend time with your friends like that...

Here, a Grade I student could handle cash. One my daughters' classmate who is an only son and both of his parents are working are given a good amount of money as a daily allowance. This is because the kid was left at school before 7am, then he eats alone for lunch and he was being fetch by his mother at around 6:00pm which is 2 hours from her last class. He would normally go to the library or hang out with my little girl and play. Then, everytime he is hungry, he could always go to the canteen for some food or drinks. I think, he is a very responsible kid.

I guess it is really depends on the maturity of the child, whether they could decide on what's the best thing to buy. Like my daughter who bought a small toy in their canteen and when I saw it, I ask her if that's necessary. I reminded her that she check 58 pieces of test papers for her aunt and it took her half day to finished it and just bought a piece of toy for the hard earned money. She told me that she was wrong in buying it. The next day, I was surprised on what she did. She told me that she returned the toy and got her money back. I was so glad to know that she can now fight for her puchasing right where in our country, it is not ordinary to return things but to exchange it for other things. Yes, another consideration is if they have the ability to compute and count their change.

I remember when I was a child, my mother never let us give cash money as allowance. Instead she was giving us food and drinks. During those days, we have a small store and what I did was to ask my mother if I could bring a couple of goods from the store which I could sell to my classmates. Then I pay it to her when I return and all the income I got there will be my savings. My father on the other hand is the spoiler one, he always gives us extra pesos whenever my mother is not looking. And that was very nice too because my mom do not buy extra things for us unless it is really needed or only every Christmas. So with our own savings, we could buy a new shoes or maybe a nice handkerchief or a cute pen.

Grade 4 was I think too old to handle money, they could get it a little younger. And I don't want my children to drink that much of softdrinks because they could get kidney problems or urinary track infection. I give limits to what they get and ask them later what they bought from the money. They should be responsible enough to handle their money and they should know whats best for them.