Spinoff of the summer job thread

Youdon'tsay · 07-12-2008, 10:06 AM

How do your kids budget? Because this summer temp job will be his biggest money-maker this year, we were thinking he'd put it in savings and then pull out some each week for expenses. What does your kid do?

ChiSquare · 07-12-2008, 10:08 AM

Spends every cent. Arrgghh!

nysmile · 07-12-2008, 10:32 AM

They have to plan out a budget on their own. Most goes into their checking accounts to cover personal expenses and books throughout the college year. The rest is used to cover their summer gas money, summer entertainment (movies, dinners, etc.), and small purchases like music, or tshirts. We let them figure it out on their own. So far, so good.

jmmom · 07-12-2008, 10:43 AM

We tried to role model well starting when he was younger, and guide him to think about savings and the long term. And it looks like it may have "taken" pretty well.

We always encouraged him to take some part of birthday/other gift money and bank it. He did.

In his first two years of college, we gave him allowance for spending money (he was doing summer school, so no summer job). We noticed, with pleasure, that he was quite frugal with it. Had money left over every month and at end of year. In the second two years (he's a rising senior), his summer earnings = spending money and savings.

What he's done (both summers): spent first paycheck on a (major $$) "want". Last year it was an HDTV; this year it was a PS3. If we hadn't had the good history to observe, this would have freaked me out. But I think his MO is fine - give himself a reward and then continue in his financially responsible ways.

I don't think he ever actually sat down and "budgeted." Although he was taught that on the side in some middle school class. And he is just tight with a dollar. For a kid who isn't, I think the parent sitting down and teaching how to budget or pointing the kid to an online budgeting program would be a very good idea.

3bm103 · 07-12-2008, 10:52 AM

If they start young enough, they learn to budget on their own before the summer earnings are supposed to last them all year. It's left totally up to them. Middle son had a friend whose parents required him to put a certain percentage away in savings, give a percentage to his church and was allowed to spend some. That included how they managed his allowance. To this day he is horrible at managing money. IMHO because he was never allowed to.

dbwes · 07-12-2008, 11:08 AM

I am not sure this was a good way at all, but it has turned out OK. H insisted she bank all her savings and continue to get a moderate allowance from us. This and her birthday/other gift money was her spending money. She now has a very nice little savings account that should last her as spending money for 2-3 years of college.
Where we are always "negotiating" is what constitutes student vs. parental expense. For example, youth and government organization trips while she was still in h.s. -- we covered. Prescription medicines, we cover. Unlike others, we paid her car insurance and gas with the stipulation that she run errands for me and grandma and chauffeur little sis around.
She pays for her own toiletries at Target; I pay for her contacts. She pays for all her own clothes, though I help out with jeans, shoes, and prom dresses (a small percent).
I think we were more generous than some, but she is a hard worker and I think she will be able to budget well in college as she knows she will have set amounts.

gosmom · 07-12-2008, 11:13 AM

Since our kids were young, we encouraged them to save some of their allowance, and would match at year end any ALLOWANCE they had saved.
D couldn't stash the money fast enough--even tried to sneak in other than allowance $ for the match. She is the frugal one. She budgets some to college, some to charity and some for "Fun"....even with her summer job.

S......well, he's a gadget man, social man, in the moment person.......haven't had to match much of his allowance over the years.....and haven't seen much of his summer job cash going to bank......but he's having fun!.......sigh.

ChiSquare · 07-12-2008, 11:17 AM

gosmon, let's hope your S & my D never meet.

LIMOMOF2 · 07-12-2008, 11:18 AM

Well, D hasn't gotten her first check yet, though she's completed two weeks of work. Curious to know when that will be. H and I haven't discussed it at all, but I think we'll be doing what dbwes does and continue giving her a small allowance and letting her bank the rest.

Interesting idea gosmom - but I'm afraid D would bank too much of her money and that the amount we'd have to match would be too high. Our S is like yours - lives in the moment and spends what he gets.