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She gets everything she needs there.

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I'm thinking she probably wants something not provided at the assisted care living facility. I don't know what it is she may be wanting the money for but obviously it's not provided.

Another thing to consider is if the cost of assisted-living happens to take most of your check, leaving you with just a very small allowance. I personally would never want to live like that since it's the next step away from a nursing home
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I'd comply with a little cash, if she can afford it. Sometimes, they may want a snack or soda from the machine. Some places still have them. When my LO wanted cash in the regular AL, I later found out that a particular male resident was getting money from her for cigarettes. We had to fix address that.  I'd make sure that she wants the funds for herself or to treat friends and that no other resident is asking for their own purposes. 
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My mother always wanted money in her purse, too. Just a few dollars would satisfy her.
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Most adults feel the need to carry cash with them. It's part and parcel of being a grownup.

Can you give your mom 5 singles each week? Will that break the bank? Would she be satisfied by "play" money?
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