How to budget summer earnings

gardenstategal
Sat, 24 Aug 2019 12:15:08 +0000

I would ask your son what he expects to need money for in the coming year. Spring break travel with friends? Fraternity dues? X dollars a week to eat/go out? X dollars for a few wardrobe updates? Let him work that through. In particular, if he’s had a year of feeling like he had to say no to a lot of opportunities with friends because he couldn’t afford them, having a war chest could seem very attractive.

He can also assess his costs against how many hours of work each represents. Several young people (including my own!) have a much easier time valuing things in this context. “Lunch at the deli costs about what I take home for two hours of work. I can make a sandwich!”

You can also help him think through what his post college obligations may be, from loans to security deposits.

It may be that if he is thoroughly informed AND thoughtful in his planning, the uses for this money will make more sense to both of you. It sounds like his reaction is a gut one to your distribution being wrong for him.

It is his money, though, and unless you had an explicit agreement about his financial obligations, it’s not fair for you to impose them now (which could be what this feels like.)

Congratulations to him. That’s a nice haul for a summer.