"Mommy, there's a new Barbie. Will you buy it for me?"

"Hey, Dad, a baseball card shop just opened up downtown. Can I have five dollars to buy something?"

To too many children, Mom and Dad are walking ATM's, eager and willing to dole out cash at the push of a button. But in reality, parents should be financial advisors, teaching their children the value and responsibility of money before the "buy-me's," take over. What a child learns at home about the proper use of money is what he carries with him through life. Experts say one of the most effective teaching tools for wise money management is the allowance. At what age to begin and with how much money are important questions for families to consider.

Preschoolers

Financial awareness starts at a fairly early age. Children as young as three already understand what money is. They may not be able to differentiate between a quarter and a nickel, but they know what the coins are used for.

When your child reaches the age of four, you can give small change as a weekly allowance. For this age, money still does not hold any particular value. Ask your child to save it in a piggy bank rather than try to spend it right away, especially since there will be few things he can afford.

Gradeschoolers

A child's ability to handle money sensibly depends on several factors, as Dr. Marjorie Beeghly, development psychologist and research director of the Child Development Unit at Children's Hospital in Boston, Massachusetts, explains, "There are four factors which influence a child in this area: his cognitive abilities (can he conceptualize things), family relationships, peer pressure, and the child's personality. Kids understand the value of money in a rudimentary way very early, but when they begin concrete operations at what is called the 'five-to-seven year shift' they are ready for an allowance."

Most experts agree an appropriate time to begin giving the first real allowance is when your child enters first grade; however, there is a difference of opinion as to the basis on which an allowance is to be given.

Financial planner and investment advisor, Carol V. Berman, believes that the allowance should be tied in with something the child is required to do at home: "People get paid for their work, children should get paid as well."

Harold and Sandy Moe, authors of Teach Your Child the Value of Money, suggest, "The allowance should be given, more or less unconditionally because of who your child is ... a member of your family who is unique and special."

As to how much to give, the Moes believe the amount of allowance should depend on the family's financial situation and recommend giving the child a large enough sum to buy something, but not so large that they are not required to make decisions such as, "Do I have enough to buy the doll and the jump rope, or can I only get one thing?"

Some experts recommend one dollar for each year of age, while others recommend giving money equivalent to half your child's age. Berman advises talking with friends to determine what other children receive.

In a national 2005 survey of nearly 1,500 children by the research firm Yankelovich, the range in allowance for 6- to 11-year-olds is $5 to $9 a week. For 12- to 17-year-olds, the average is $10 to $19 a week, and around 15 percent of 12- to 17-year-olds received $20 to $49 weekly. (Notably, the study found that fewer than 60 percent of children ages 6 to 17 get any allowance.)

Should you have a say in how your child spends his money? If the allowance is given unconditionally, it should be the child's decision, not the parents'.