Sending teen to college-a few questions

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Op again. Was hoping to hear from folks who have calculated/established a spending money budget for their kid(s). Thanks.

I actually established a spending money budget for my child in high school. I give him $240 each month ($60 weekly) to spend on all the things he needs (toiletries, haircuts, clothing, school supplies, movies, snacks, club costs etc.) He has to budget it according to different categories, and show me receipts for everything he buys, and if his books don't balance I don't give him his next $60 allotment, so he makes sure he is keeping track.

It's been remarkably successful in teaching him how to save up for things he wants. He might have $250 in savings, but he only has $20 earmarked for "entertainment" whereas he's saving up $130 towards a big club trip he wants to take, $50 towards new sneakers he wants to buy, and $50 for other items. So he knows he can only spend the $20 on going out to the movies with his buddies, for example.

I think it is great training for living on your own in college.

My parents did something similar. Starting in high school, they gave us all the allowance we were going to get for the entire school year in a checking account with a debit card. In college, we got all of the spending money they were going to give us before the start of freshman year. Whatever you feel comfortable giving, just be clear that this is the money you are giving and what it is intended to cover. This is a great way to learn about how to manage money. I ended up graduating college with a fair amount left over, which helped me get started in a new city after graduation. My brother spent it all, but he took a year off in the middle of college and took a low-paying, but high value internship and used the money to help support himself.