Kids should start getting allowance when they are of school age and the list of “extras” they want explodes, explains Jean Chatzky, author of Money Rules. While some families are ready when kids turn 5, Chatzky says, most kids are actually prepared for allowance at about age 7. Chances are, they already have an awareness of money from watching you whip out a credit card or get cash magically from a machine. Now teach kids where that money comes from, how to manage it responsibly and the consequences of when it is all gone. There’s no need to explain everything right away; they will get it in time and with practice.