How to manage the monthly allowance?

Parents Forum
21

<p>Student here: My dad gives me a check every 3 or so months with 3 months of “allowance.” Mine is very large because I take care of paying tuition, rent, groceries, etc. I have a part time job that helps with stuff too. He did this so I would learn to manage money long-term, such as it will be in the real world.</p>

<p>I charge everything on my credit card and pay it off at the end of the month. I would highly reccommend responsible students get a credit card to help build their credit, and just use it for stuff they have the cash for. Like Simba’s son, my credit rating has climbed to the excellent range just in a few years. I’ve never run out of money, and keep a budget, along with having an Excel spreadsheet that has a “what if” scenerio for months ahead if I keep spending and having an income on the same level.</p>

22

<p>We manage the monthly allowance as an automatic transfer from our account to theirs. We set this up to take place on the same day of the month as their birthday so they can easily remember when their money will ‘hit’ (this also spreads out the siphoning from our account). Their checking accounts have associated debit cards; our oldest had a credit card; #2 shouldn’t, knows this, and doesn’t. So far our kids have had ‘our’ bank’s ATM on campus.</p>