<p>Most kids probably made mistakes they regret when they were 5. We aren’t talking about 5 year olds.</p>
<p>Ok…back to the OPs question. It appears,that the money you are handling goes toward entertainment, and eating out…and other pleasure things for your son…not necessities like housing and utilities, and a regular food allotment.</p>
<p>That being the case…I say give him ALL of his fun money. And yes…if he runs out, don’t help. The worst thing that can happen is he won’t be able to eat at restaurants, go out to the bars and clubs, go,to comcerts and movies, etc. I can’t imagine why covering these expenses would be YOUR problem I’d he goe through all of his own earned money. </p>
<p>So yes…for these things…if he can’t budget, and runs out of money…yes…let him go broke.</p>
<p>Let him figure out on his own that replenishing this money once it’s gone will require that he get a part time job and earn more. </p>
<p>Close that “Bank of Mom and Dad” for these things.</p>
<p>I just want to say, we have given our kids loans and money gifts from time to time, but we have never completely controlled money THEY earned.</p>
<p>OP- So teach him to manage his money. Tell him about that app (mint) and have him use it to budget. Let him own this responsibility-- but not pi$$ his money away.</p>
<p><a href=“https://www.mint.com/[/url]”>https://www.mint.com/</a> ( I have no connection to this appp- but my Ds found it very helpful)</p>
<p>Different strokes for different kids and families… </p>
<p>If this truly is his “mad money” for recreation and extras, I’d let him have control of it. </p>
<p>BUT, If that’s still worrisome to you (and you know your own kid), why not at least give him the rest of this semester’s worth NOW, in one lump sum? </p>
<p>If he’s burned through that dough WAY before he returns to school in January, he’ll be more inclined to improve his budgeting skills through his last semester. Could be a bleak holiday break with no pocket money, but a lesson learned.</p>
<p>If he does well with budgeting through the next few months, give him the rest of his saved money in one lump sum in January when he returns to school.</p>
<p>
Excellent. Thats exactly what we did with S#2. He did demonstrate improvement in his fiscal management, and was able to produce graphs and such to review (he and DH like to talk about financial matters). So, when holiday season of his senior year rolled around (and he was already 21 so this was sort of a moot point), when we asked him what he wanted, he said he wanted to have total control of funds in his name. So instead of giving him the $$ for rent/utilities, etc monthly, we gave him a lump sum in January, and emptied the joint online savings account that had been the pass through way we sent him the funds for rent (he always paid for his own discretionary stuff).</p>
<p>The tricky part about this is that the $$ that was in his name, for college (not my choice to have it in his name but thats another story). Anyway, he was fortunate to have a nice undergrad scholarship and had initially planned to go to med school so wanted to save the $$, but decided on engineering instead. So there was a rather nice chunk of change in his name. Yes it was his. Completely. He knew it and we knew it. He wanted our eyes off of how he handled it. And it was not an insignificant amount. He and DH agreed to still work together on the investment account. I have no idea what Ds has, or what he does with it. Its his. I hope we taught him well, and he seems to have demonstrated that he learned.</p>
<p>Does he makes come choices with his $ that I may not agree with? Sure. One in particular. Do I like that he is a sponsored poker player on the side? Um, NO. But he shares his financial matters with DH when they do taxes, and he keeps his “hobby” money totally separate and doesnt touch his savings. He lives frugally so I suspect his income supports the card playing some. Dont like it, but it is what it is.</p>
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<p>To be fair, no one hears the whole story on anything. I did say, “or so she claims” to leave room for debate on her reporting. However, the entire argument is irrelevant seeing as how the OP’s son is a college senior, so restrictions for adults under the age of 21 bear no weight to the argument that he could apply for credit cards - which was the OP’s concern. The example I provided earlier was merely to show that it is very possible, especially since he is 21. The restrictions may have changed, but you still see 18-22 year old college students with credit cards, whether co-signed or not. But as I stated, even if he took this route the limit will likely be low enough to not get him into too much trouble, at least not more than a simple part-time job on the weekends couldn’t fix until he graduates.</p>
<p>Regarding credit cards, I was able (or rather, instructed) to use FA as income on my applications and managed to get 2 this summer. One through my bank with a $1,200 limit and another one through a major retailer with a $2,000 credit limit. YMMV.</p>
<p>But I am 21.</p>
<p>A good approach may be to have a budget summit when he returns home for the holidays. Discuss budgets, how to create them, how to stick to them and what is looks like with his remaining funds. With your guidance and wisdom help him see what a realistic budget looks like for him. Then he can have his money and the last semester to work the plan. </p>
<p>IMHO I think he needs a period of time to see how this works before he enters the work force and is living independently. Now is the best time figure out he does or does not do well. If he burns through it, then that’s a new talk. Better now than after he signs a lease, buys a new car, and then realizes he is in over his head.</p>
<p>I agree, now I’m thinking it might be a better idea to give him the rest of this year first. Last year New Years was pretty expensive for him. But aren’t I being controlling again? And what if he doesn’t budget well? It is his money, sink or swim?</p>
<p>Yep…it’s his money…sink or swim. If he doesn’t budget well, he might not be able to go on a trip during spring break, attend a concert in March or whenever, go out to fancy restaurants with friends, continue to pay for using a car, etc. None of these things is life threatening! He can survive without them. OTOH, he can do it all…if he budgets wisely and gets a part time job. Choices choices…they are HIS to make.</p>
<p>If not now, when? I rather out kids make mistakes budgeting when the mistakes will be less expensive to fix than later when they can be much more costly and have longer term implications. We gave our kids money by the term most of the time they were in college. Neither ever asked for an advance. Actually, our kids tended to be much more careful with “their” money than “my” money. </p>
<p>If kiddo runs out of money, have him sign a promissory note with interest for any advance, like hex have to do with any other lender. People can learn to manage funds if it is important to them and when they know the supply is limited and there are strings for any loans.</p>
<p>OP - Your original post was very clear, and I’d suggest that you just share your concerns with your son and discuss what’s going on. Let him know you’re willing to hand the money over to him, and ask if he’s ready for that. Tell him you’re concerned his money will run out, can you work on a budget together? Set him up with a Mint account, as suggested earlier. </p>
<p>If you give him the money and the tools he needs, there’s no reason to think he will blow it. A lot of folks here seem to think that you just give him the money and let him fail. I say give him tools and help him to succeed.</p>
<p>No, do not!</p>
<p>What do you plan to do when he graduates - still control his money for him? He needs to learn to budget, and be in control himself. The time to do it is now, when you can still be there to pick up the pieces. He’s living in a frat, so his housing is taken care of, and probably his food - if not, ask him to set aside that money, and suggest he is free to use the rest. Tell him if you have to bail him out, it will come in the form of a loan, and write it up as such, to be paid back with interest.</p>
<p>You might be surprised at his ability to budget. You suggest he has needed an advance each month, but that doesn’t necessarily mean he isn’t budgeting well. If he miscalculated the first month, he may simply be catching up - say he budgets $200 per month, and used $300 that first month. You give him the advance in month 2, but $100 of that month’s money was already used leaving only $100. Even if he cuts his spending to $150 he’s still “over budget” by $50 and still needs an advance from month 3. If he’s asking for an advance month to month, but not pushing it earlier and earlier each month, I wouldn’t worry about him.</p>
<p>Also it’s his money - should he be forced by you to spread it evenly over the semester, or should he be able to decide when to spend it? Perhaps he will spend half of it the first month, but buy something that is useful the entire semester.</p>
<p>DS graduated from high school this year. He received 2 credit card apps in the mail shortly after graduation. The credit limits were both less than $1000. They both talked about how important it was to establish good credit… I threw them out but they did not require a cosigner. So there are credit card companies that are still marketing themselves to kids under 21.</p>
<p>MichiganGeorgia–post HS is a good time to get a credit card and start establishing a credit history. And a credit card is sometimes needed for purchases such as airplane tickets.</p>
<p>You want your son to “practice” with a card with a low limit. One card, and pay it off every month so he doesn’t pay interest. It’s how they learn good money habits that should last the rest of their lives.</p>
<p>My S buys textbooks with his card, just so it sees some use. (He has yet to pay his own airfare anywhere 
) In any case, if he needs to buy a car or even a house, he will have a track record on credit.</p>
<p>Banker here (but my bank doesn’t issue credit cards). The rules for underwriting credit cards vary significantly from bank to bank. However, I have seen many banks will accept part-time summer jobs - but the credit lines extended will be minimal (say $500 - $1,000 or so). Since there is a job and the limit is small, no regulator or court could say the line is not supported by income. I have also heard rumors of some banks that will count scholarships and the payment of tuition by parents as “income”. Those seem to be pushing the limit a little. </p>
<p>I don’t see any problem with any college student having a credit card with a small credit line for incidentals (gas, food, small purchases etc.). It is convenient and can teach good credit habits. Of course a few “bad actors” among the credit card companies caused the problem - I know this first hand. About 15 years ago, my youngest brother-in-law was in college. He had nothing but part-time minimum wage jobs during the summer. He told me the credit limit he received on a MasterCard - the limit was larger than mine, even though my wife and I made six figures!</p>
<p>EDIT - I have made my college kids “authorized users” on one of my Visa credit cards as well as my American Express. Their credit reports show paid on-time credit.</p>
<p>I agree with Greenbutton.</p>
<p>Safety net…not harness. :)</p>
<p>Good luck, OP.</p>
<p>The first problem is that you don’t trust your son to handle his own money, so first you need to accept that he is a grown up and has to make his own decisions. He’s in a part of his life where he doesn’t want to feel like a kid anymore and if he is going to make mistakes, then he has to learn from them and move on.</p>
<p>I made quite a few mistakes spending thousands of dollars wastefully (and I am from a low income family so that should tell you something), but I learned from them. He might save money over the long run if you control every dollar he spends but you won’t be preparing for him to function as an individual. He might spend them on stupid things but at some point you just have to come to terms that you doing this is preventing him from thinking like a mature adult.</p>
<p>OP has indicated that she’s going to give him the money. I hope she comes back and reports how it goes …</p>