Thursday, October 24, 2013

Allowance - A New Approach

Carter becomes a teenager next month.  Blake and I have been discussing a new approach at allowance.




The details:

He'll receive $75 at the beginning of the month to budget, save and spend.

All of his monthly expenses will have to come out of this money, so he will have to stay aware of his spending and make smart choices.  If he does not, he will have to sacrifice.

This money will go towards outings with friends (movies, paintball, Disneyland, birthday gifts for friends, etc) and we will not supplement if he doesn't plan.  He will have to miss out on things if he doesn't have the money.

For the first few months, we will insist he saves half for the month to ensure he transitions well.  We will help him monitor his account online, balance his ledger and more.  He already has a check card linked to his account, so he has some experience.  

We will provide the basics, of course.......including clothing and his Disneyland pass is already paid.  But, his allowance each month will go towards entertainment and extra things he'd like to buy for himself.  Extra things = Elite socks, a Disneyland pass upgrade, etc.

Thoughts?

Suggestions?

This is a big move and if we move forward with it, I want it to be long term.  I know there will be some tears and lessons learned.....but we think he's ready.

15 comments:

Tutus and Choo-Choos said...

That is a HUGE step up for a teen! I'm not sure how my 13-year old would do with budgeting. We do not give our kids an allowance. We work under the philosophy that they must do things around the house, the older two girls babysit, and we provide them with the money to do things. Good luck to Carter!

Emmy said...

That sounds like such a great plan, as yes budgeting is such an huge important skill to know, way too many people have no clue and just spend at will.

That first time that he misses out on something because he overspent, it will be a lesson he will always remember in life.

Dee Stephens said...

I have no real experience with this but I do have a bit with giving money in advance and letting them spend until it's out. My nephew came and stayed the a Summer with my parents at 13. I took him to Charleston for the weekend and gave him money in advance to buy sodas, snacks, and souvenirs. Guess what? He lost it all towards the beginning and he was SOL.
Then guess what? When we got home and washed his clothes his money was in a pocket of his shorts he had forgotten about! HAAAAAA

starnes family said...

I think we're accomplishing what most parents are.....providing money for chores. With this new approach, we're tying their work to the money they will spend throughout the month. There will be tough lessons learned....but we're hoping the lessons he learns now will prevent tougher ones in the future.

He could lose it. He could spend it irresponsibly. And, if he does that or more, he'll learn from it. Fingers crossed!

If the shoe FITZ said...

I think it's great. Carter his a good kid. He'll figure it out!

Nate said...

All growing up, we had to do 10% tithing, 40% saving, and then the other 50% was ours to do as we pleased. I was (still am) a saver, so I ended up paying for my entire first year of college out of my own pocket and was later able to use the money my parents had saved for my college to pay cash for my car (which I still drive, it's 16 years old!)

Nate said...

Becca, not Nate. :)

Jodee said...

I think that is a great idea and please keep us posted on the progress! I think the sooner they learn how to budget, the better!

Moe Miller said...

We are on the same page here at our house. So far, so good. I have a 13 year old son and an 11 year old daughter. They both get weekly allowance.

Our thoughts are to teach them how to budget and handle the money now. Especially before college and the credit card solicitors get a hold of them!...a little early I know, but they are already learning to tithe, save, and balance the checkbook...of course there are bumps, evasive maneuvers, and lectures...funny, the only tears are from the fashionista, LOL!...but they are learning and talking to us about it and that's important!

Good luck!

Amy said...

I know several people that would've really benefited from this type of system (many STILL need it!). I am amazed and saddened at the number of adults in this world who are clueless as to how to properly budget their money. I think its a fantastic idea and am anxious to hear how it works out! Good for you, Casey, this is a truly important lesson! :)

Kristen said...

I love this. I'm already wondering how I will be able to help Quinn respect and responsibly manage money in this world of ours that is all about stuff and more stuff and instant gratification. I LOVE your idea. I love that he will have to manage a budget and watch his account.... this is awesome. I am making a mental note of this so I can do the same in 11 years....

Kelly Beatty said...

Sweet. Great idea Starnes Fam! This inspired me to finally set up a savings account for my daughter. Good luck Carter!

Malinda said...

I've noticed that even with my 6 year old that when he has his own money, he is a lot more picky about what he spends it on. When it's my money, he spends a lot more freely.

I bet Carter will do great!

Monica said...

As a CPA, I think this is WONDERFUL! There are so many adults who never have learned to budget/track spending. It makes me sad. I LOVE LOVE LOVE this idea!

Jboo said...

I think that is a great plan! Can't wait to hear how it goes.