Most people can remember a time as a child when they received an allowance. Maybe they mowed the lawn or vacuumed the house. Whatever it was, your parents would give you a few dollars each week to reward your work. This money was yours, and could be used on anything you wanted. This is a practice that people might want to consider applying to themselves as it can serve as a great way to help you save money.
The reason behind an adult allowance is that adopting this kind of policy can help you monitor your finances better. By setting aside say $50 each week for pleasure spending, you are able to keep a stronger hand on your budget. It will limit your idle purchases as you will be restricted to just using that small fund that you set aside. This practice will also help you better appreciate each purchase as you're increasing the opportunity cost of every personal purchase. You're essentially increasing the significance of every action you make.
This policy is really no different than budgeting, as you could also just allocate money to different segments of your expenses on a regular basis. However, it is a bit stricter than budgeting as you are essentially creating a hard max as you don't have more than the allowance available.
It's a strange concept that serves as a throwback to our yesteryears, but it can also be a great way to help improve our savings. Restrict your pleasure spending and you'll be sure to expand your savings.