Whether or not children are allowed to handle their own pocket money, parents and stepparents will surely be budgeting a certain amount of cash for their children’s everyday needs and wants. Kids don’t need a great deal of money, but ideally, they should have enough so that they can learn to spend some and save some. Many parents help children to learn about the importance of spending by asking kids to separate their money into at least three portions. One is for immediate spending, one for short term savings (outings, video games, etc.) and the third is for long term savings (a car, college, etc.). In some families, they add a fourth category, which is for donating, teaching children the value and importance of helping those less fortunate.