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Strollerderby
Hey Mom, Give Me All Your Money – Now
Remember counting out your pennies the day before allowance day to see if you had enough left over to buy, well, anything? Not anymore – there’s a growing number of parents who are doling out the allowance in one lump sum.
Imagine, no more weekly pestering by the kids for cash.
I read about the concept over at the Wall Street Journal this weekend, and I was intruigued. The WSJ’s San Francisco Bureau Chief Steve Yoder was doing this for his son, a recent high school graduate, but I can see how it would work for younger kids too (albeit in smaller increments than a year).
I was taken aback by what the Yoder’s were expecting him to use it on – a haircut is an allowance spending? Isn’t that quality of life stuff that parents should cover anyway? Perhaps they look at an allowance differently from most folks.
My understanding of an allowance is spending money, be it blowing the whole thing on candy or saving up for a big ticket item. It’s for the extras, the stuff parents don’t normally cover (like the quality of life items – the deodorant, the toothpaste, what have you). Earned via chores or provided as a reward (for good grades, stellar behavior and the like), it’s the money they can spend THEIR way.
But setting up lump sums carries with it the ability to teach your kids money management skills. Give them say $20 a month, and it has to last ALL month. There will be no more cash flowing on Mondays, so they need to budget out candy purchases for the next thirty days. As they age, the time frame can be extended to two months or every quarter and beyond until you find yourself putting a yearly amount in their savings account like one dad in Yoder’s column.
Having a savings account in and of itself can teach kids good spending habits, so why not?
My daughter hasn’t hit allowance age yet (and I never got one – but that’s another story), but I’m debating this method already to provide her with some appreciation for what money means. Would it work in your family?
Image: Boston.com
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[...] This is a question that I have yet to have to deal with, and I’m not sure how I feel about it. So I ask you, the reader, to weigh in. (Jeanne put this idea in my head with her post about lump sum allowances.) [...]
When Should Kids Start Getting an Allowance? | Strollerderby commented on Jun 15 09 at 5:31 pmPlumbLucky commented on Jun 15 09 at 1:19 pmActually, I received some of the “essentials” monies in with my allowance. Reason being – Mom felt that she would pay for essentials, as in, she’d pay for a haircut at Fantastic Sam’s (for example). If I wanted to go elsewhere the cost more, I could have the $$$ that it would require at FS, and could add in my own.
leahsmom commented on Jun 15 09 at 2:25 pmI consider providing my kiddo with deodorant and shampoo to be more of a quality of MY life and other people’s lives – she wouldn’t care if she didn’t shower that often! :)
Knitty commented on Jun 15 09 at 3:07 pmI don’t think it’s unreasonable to expect a high-school graduate to pay for his own haircut. We’re not talking about a little kid just learning how to manage his money here, we’re talking about someone on the edge of adulthood. Personally, I didn’t get an allowance once I was old enough to get a job, but I can see where parents would make an exception in this economy.
ChiLaura commented on Jun 15 09 at 5:22 pmWhen my sister and I turned 13, we started to get $25/week from my parents. It was divided up into the categories, with a set amount going to each: savings; long-term spending; short-term spending; and church tithe. We paid for: school lunch (so we usually brought our own from home, as that just came from groceries); all clothes and shoes (except we had help on big ticket things like winter boots, coats, cool weather coats); movies or any fun activity with friends; make-up; food away from home; books or hobbies; you probably get the point. It taught us to save for what we wanted, to shop sale racks and discount stores, to look for cheaper options (I plead guilty to sneaking candy into movies), to bring our own dang lunch, etc. Plus, then we never asked my parents for money. We could also baby-sit or do extra chores to earn extra money. I plan to use this system with my kids. It was great.
Manjari commented on Jun 15 09 at 6:01 pmMy parents gave me $300/yr. starting in 9th grade. That was for ALL school clothes and extras. I would get 2 outfits and spend the rest on cd’s and lip gloss. It didn’t work out well.
mirthful commented on Jun 15 09 at 7:56 pmmy mother would give me an allowance randomly. if i did something or she felt like it. i saved it always and bought big ticket items. like barbie land. im still a saver. but i was born this way. i watched my mother go bankrupt when i was quite young. maybe this had the greatest effect on me. she is still crap with money.
Brett Singer commented on Jun 15 09 at 8:23 pmThis is very interesting – I didn’t realize so many people did this.
Tony Lavelle commented on Jun 25 09 at 6:03 pmI am writing a book about the declining state of American Manhood–especially among the 20-something males of today. In my research, I found that America has an embarrassing 75% divorce rate. That 50% of husbands cheat. That many American women are having a hard time meeting a good man.
How does a boy become a man? Training and mentoring. One quality of manhood is responsibility—such as financial responsibility.
When I was in the military, I remember counseling a young soldier in trouble for writing bad checks. I asked him why?
The knucklehead said, “I had checks in my checkbook. I thought I still had money in my account.”
To start boys early on to manage their finances, I have written a “lump sum allowance,” training plan that any parent can use. Just email me and I would be happy to send a copy.
All I ask in return is feedback on how it is working … or not. I am collecting statistical data to refine this plan, as well as the entire training curriculum for teaching boys to be men.
Tony
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