I did the allowance thing when they were little but in my opinion it has nothing to do with teaching budgeting. My daughter is now 17. Starting at the age of 14 when she was able to get a job, she did and we set up a checking/savings. Since then her phone has been taken out of my name and she pays that, make up, half of drivers ed, and anything else she wants after a chunk of each check goes into savings that she cannot touch. Starting at 16 she contributes $10/mo for Internet, Hulu, Netflix, etc. and the second her phone is shut off or I don’t get this all passwords get changed and locked. This has only happened once. Since 17 we have found a car, sat down crunched numbers, made a budget, and already gotten pre-approval from the bank for when she’s 18. We will not hand them vehicles especially and we also do it so they can start to build good credit while being shown how and still being able to handle payments.