Allowances can be downright confusing: what amount? How often? How do you know if your child is ready to receive an allowance — and if it's time to call it quits? We talked to Amy Nathan, author of The Kids' Allowance Book and Adriane Berg, co-author of The Totally Awesome Money Book for Kids, to get the scoop on the best allowance advice.

Be Consistent. An allowance is a way to teach your child about handling money that comes in regularly. "You have to stick with it, otherwise it defeats the purpose," Berg says. This means you decide on how much, how often, how it can be used and, most importantly, how it's earned.

Make Adjustments Along the Way. "Allowance is a work in progress," notes Amy Nathan. For example, commit to giving an allowance on a regular basis. However, if you find that weekly amounts aren't working for your family, make the switch to bi-weekly or monthly. (Consider moving to monthly amounts for older kids, so they learn how to budget accordingly.)

Help your Child Set up a Savings Account. Head down to your bank or credit union as soon as you start giving an allowance. This encourages good habits early on.

Don't Get Hung up on Amounts. "Some experts recommend these incredibly complex formulas based on factors like age, but that's just not necessary," Nathan says. It's one of those parental judgment calls that are based on your own income and attitudes about money, and your child's needs and abilities. (For a reality check, use this allowance calculator to see what the allowance you received as a kid is worth in today's dollars.)

Know When to Start. Typically, the best time to begin an allowance is when your child expresses an interest in buying things herself. Depending on the kid, that could be at age five or older.

Know When to Stop. Don't continue with an allowance once your older teen starts earning his own money at a regular part-time job. You may want to consider a quarterly clothing allowance instead.  You can’t expect a teenager to be financially independent either at this point.

Don't Withhold Allowance as a Punishment. "Money should be separate from discipline," says Nathan. If you cut off allowance for bad behavior, your child may think that she's being paid for good behavior, not the message you want to send! You want to reduce the emotion connected to money. Rewarding your child with money when he’s pleased you and taking it away, when he’s angered you, lays the foundation for making financial decisions based on emotion.

Don't Give Extra Spending Money in Addition to an Allowance. That defeats the purpose of teaching your child about money management. Save it for a special event like a family vacation. You may want to offer to match the amount that he has saved for the trip (of course, use caution if he's a hoarder!) A child who has a budget, but can get more money when he wants it, is more likely to view credit cards as a supplemental source of spending money.

Do Provide Allowances in Small Change. For example, if your child gets $5 a week, give it to her in dollar bills or quarters, rather than a $5 bill. This makes it easier for her to divide into amounts to spend, save and donate.

Check in with your Child. Don't assume that simply giving a child an allowance teaches financial literacy-you've got to periodically talk with your child about how she's spending, saving and investing.

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