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It's a tough topic, but financial advisors say allowances are beneficial for kids and teach them a number of important skills.

However, parents need to make sure their kids know what the money is for.

Faisal Karmali of the Popowich Karmali Advisory Group in Calgary says allowances help teach children about financial literacy and budgeting.

"It all comes down to what the purpose is. When I look at my own situation, I've never given an allowance. I still don't give an allowance to my children. They have to earn their money."

The Canadian Imperial Bank of Commerce released a survey in 2018 where it found a vast majority of parents (81 per cent) found it was important to give their children an allowance.

According to the report, those parents gave out an average of $91 per month for allowances.

CIBC also said 13 per cent of respondents give their kids money with 'no strings attached' while more than half (55 per cent) say kids need to earn their money.

"The average age where parents start is nine," Karmali said. "Personally, I did it at five, but it wasn't an allowance. They had to do certain jobs outside of their daily chores."

He says it's important for kids to understand that difference too.

"I think earning money is important, but I also think that when you're doing chores, there's an expectation in the family, so they had to do other things."

Karmali also says doling out allowances also requires a fair bit of parenting and knowledge about your kids.

"Are they focused on the money or are they focused on the reason behind the money?"

With his kids, Karmali says he likes to break down their money into five different areas: short-term spending, saving for the future, post-secondary education, tithe for the church and charity.

The attitudes children adopt from allowances can also influence their financial decisions later in life, Karmali finds.

"There are people who actually expect, no matter what they do, somebody should hand them cash and that's what I'm trying to avoid with my children. You're never going to just get money, you have to earn it and you have to have satisfaction of a reward on earning that. Those are the key drivers that I'm trying to instill in my children."

For more financial tips and money-saving information you can visit the Popowich Karmali Advisory Group online.