Appropriate Allowance for Freshman in College

[Anonymous]

Anonymous wrote:

Anonymous wrote:What do your kids do in the summers prior to going to college? My kid easily made $4K last summer as a 16 yr old. He saved around half of that. He will probably make the same this summer and next so by the time he starts college, he will have $6K or more saved. I'm not giving him an allowance. He is not 6 yrs old unable to make his own money. I had to use my summer earnings to pay for my books and as my fun money and he will do the same.

What exactly did he do in 8 weeks to make $4,000? 🤨

NP - my nephew caddied at a high end club last summer and made a lot more than that. He was making $800-$1000 a week. Crazy money.

[Anonymous]

Anonymous wrote:$350/mo for entertainment is more than I allow myself to spend. But I'm early 40s with a net worth of $1.2M so I don't waste money.

It's definitely a virtue to spend less than you earn. But we've been teaching our kids to pay for things that bring value, and to not shy away from those types of expenditures. If you truly enjoy something, it brings you enjoyment that is worth it, and you can afford it, go ahead. The key to having high NW is only partly saving, the more important part is to have high income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What do your kids do in the summers prior to going to college? My kid easily made $4K last summer as a 16 yr old. He saved around half of that. He will probably make the same this summer and next so by the time he starts college, he will have $6K or more saved. I'm not giving him an allowance. He is not 6 yrs old unable to make his own money. I had to use my summer earnings to pay for my books and as my fun money and he will do the same.

What exactly did he do in 8 weeks to make $4,000? 🤨

DP, but my kid will probably earn about that much by the time summer is over. She’s head instructor for a summer camp program.

[Anonymous]

My kids saved their money from summer jobs to use for play money and school supplies during the year. That was the expectation. We gave them a little bit here and there if needed but the majority of their fun money was money they earned themselves. No allowance

[Anonymous]

Anonymous wrote:My kids saved their money from summer jobs to use for play money and school supplies during the year. That was the expectation. We gave them a little bit here and there if needed but the majority of their fun money was money they earned themselves. No allowance

Same with ours and what was great was that they used their own money wisely. If you send your kid $500 a month they are going to party and piss away your money. Then they graduate and hope that the $6000/year subsidy will continue.

[Anonymous]

Anonymous wrote:We are giving 400 a month outside of normal fixed expenses.

This was my college allowance 30 years ago

[Anonymous]

Anonymous wrote:

Anonymous wrote:What do your kids do in the summers prior to going to college? My kid easily made $4K last summer as a 16 yr old. He saved around half of that. He will probably make the same this summer and next so by the time he starts college, he will have $6K or more saved. I'm not giving him an allowance. He is not 6 yrs old unable to make his own money. I had to use my summer earnings to pay for my books and as my fun money and he will do the same.

What exactly did he do in 8 weeks to make $4,000? 🤨

I know plenty of teens who make this in a summer babysitting, mowing lawns, giving sports lessons to younger kids, etc.

[Anonymous]

I never got an allowance in college so I worked hard during the summer. But in order to travel through Europe during the summer between junior and senior year I had to work 20-30 hours a week plus take a full course load. The best grades I had were during those two years because I had to learn to prioritize and focus especially if I wanted to have any fun. It was a great lesson though I was jealous of the kids with big allowances.

[Anonymous]

My kids spend what they make over the summer.

No allowance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What do your kids do in the summers prior to going to college? My kid easily made $4K last summer as a 16 yr old. He saved around half of that. He will probably make the same this summer and next so by the time he starts college, he will have $6K or more saved. I'm not giving him an allowance. He is not 6 yrs old unable to make his own money. I had to use my summer earnings to pay for my books and as my fun money and he will do the same.

What exactly did he do in 8 weeks to make $4,000? 🤨

He worked part-time at the pool cafe at the country club down the street. He could’ve made a lot more than that if he worked FT. Those jobs went to the college kids. Also, he worked from Memorial Day to Labor Day so it was more than 8 weeks. Most pools are open then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My kids saved their money from summer jobs to use for play money and school supplies during the year. That was the expectation. We gave them a little bit here and there if needed but the majority of their fun money was money they earned themselves. No allowance

Same with ours and what was great was that they used their own money wisely. If you send your kid $500 a month they are going to party and piss away your money. Then they graduate and hope that the $6000/year subsidy will continue.

NP here. I got 1k to cover rent for off campus housing, utilities, food, and all other expenses. My parents definitely screwed up since I have a terminal degree and a solid career. They screwed up so much that I learned to budget and save. Totally sucked. I will do the same for my kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What do your kids do in the summers prior to going to college? My kid easily made $4K last summer as a 16 yr old. He saved around half of that. He will probably make the same this summer and next so by the time he starts college, he will have $6K or more saved. I'm not giving him an allowance. He is not 6 yrs old unable to make his own money. I had to use my summer earnings to pay for my books and as my fun money and he will do the same.

What exactly did he do in 8 weeks to make $4,000? 🤨

np. why so incredulous? my kid, incoming HS senior, is working part time (about 25-30 hours/week) as an entry level crew member a national fast casual chain (think chipotle etc.) this summer, so not exactly some high end place with tips, an amazing hourly wage, or a lot of hours, but he'll make probably somewhere around $4k by the end of the summer. $16 an hour x 27 hours per week x 10 weeks of summer...$4320.

math. it's a beautiful thing.

[Anonymous]

wow!

My parents paid for my education.

If she wants money she can get a job??

My parents helped me out a LOT with tuition, and luckily I lived close enough to my school that I lived at home so I didn't have to pay for a dorm, and I am grateful.. But I worked part time, bought my own groceries and other things I needed, why should my parents have given me an allowance after they already helped me with tuition and transportation and a living situation?! That just seems greedy to me. Even when they offered me cash for gas or whatever I always said no because I would feel so guilty asking for money after all they helped me with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Nothing. I saved every dime either of them got for holidays/birthdays/baptism/etc. They added to it with summer jobs. Each one had/has upwards of $25k. If they spend all of it, that’s over $600 a month per school month if they add nothing else to it for 4 years plus they still get $ from various relatives for birthdays and Christmas.

My parents did the same thing and I was told from an early age that it was for everything tuition, room, and board wouldn’t cover…so school books, food out, movies, beer, etc. I left for college with $15k and graduated with $12k. I was able to buy my first car (used) with that which I needed for grad school and put down security and first month’s rent on my apartment.

So, the answer isn’t “nothing,” it’s $25,000. If we had saved every dime my kid had ever received as a gift, plus summer job $$, there’s no way it would be close to $25k. You have a generous family. Good for you.

Sure, my family is generous but I don’t think overly so. They benefitted greatly from several years of good returns since I invested their money for them. Even just the $25/kid/holiday and birthday from birth to 18 from 2 aunts, an uncle, and 2 godparents was $4500 alone, they worked 3 full summers, and had odd jobs babysitting and such before that. Conservatively I’d say each kid banked $12k from jobs, then the birthday and holiday money gets you to nearly $17k. Then returns and one off gifts for baptism, first communion, high school graduation, etc. It added up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What do your kids do in the summers prior to going to college? My kid easily made $4K last summer as a 16 yr old. He saved around half of that. He will probably make the same this summer and next so by the time he starts college, he will have $6K or more saved. I'm not giving him an allowance. He is not 6 yrs old unable to make his own money. I had to use my summer earnings to pay for my books and as my fun money and he will do the same.

What exactly did he do in 8 weeks to make $4,000? 🤨

NP - my nephew caddied at a high end club last summer and made a lot more than that. He was making $800-$1000 a week. Crazy money.

I also suspect that a lot of that was tips that weren't getting reported to the IRS. Despite what someone on this board keeps claiming, it is hard for a teen to clear $4,000-5,000 in a summer after taxes, and most seem to assume that the teen isn't spending any of it before they head off to college. My DC worked hard a grocery store this summer and didn't make anything near that, and a chunk went to the IRS/FICA.

I was able to support my own spending money in college after I went to law school and started making much more money clerking over the summers (and this was back before law clerks and associates made the money they make now), but I never made enough from my summer job in college to have enough to last me through the year. It's generally only possible if you get a job that gets tips and lie on your taxes (which I don't want to teach my kid to do).