Success Story: Affording Allowance

Introducing a new series of postings…“Success Story.”

This story is the first of a new series of postings. Once a month, I’ll feature a success story. Teaching your kids and teens about financial responsibility can be challenging. Not everything works for every child or family situation. By highlighting a family’s success story I hope to give you an idea for your family or get you motivated to start an allowance program.

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One parent told me that she wanted to give allowance to her kids but felt like she couldn’t afford it due to her household budget limitations.

“Don’t you already spend some of your money on the boys?” I asked. “For example, do you give them money when they ask to go to the movies with friends? Or maybe they ask for a special pair of sneakers?”

“Sure,” she said. “My middle school son walks into town with his friends for movies and pizza. And my younger son will need a cell phone by next school year. Plus, I admit that I have given in on occasion and bought them a game or two for their Xbox.”

We talked about all the budget items that she was already spending on her kids. She decided that she would take that amount from her budget and give that amount as allowance. This way her boys would learn to receive allowance and have to save up for the movies, pizza, games and cell phones.

“After our chat, I sat down with the boys. They are older and understood our household budget limits so I explained how I would be taking the same amount of money and give it to them as an allowance. We discussed how they would be paid twice a month like a paycheck. We talked about how they would split up their allowance for spending, saving and charity. The money would be theirs and the choices would be theirs too. They were really excited and I could tell that they felt important and appreciated.”

She feels great about giving her boys a choice on what and when to buy yet she is still spending the same amount from her household budget before she started the allowance program. She is now regularly talking to her kids about money and choices. And she has taken her boys to the bank to open up savings accounts.

You can’t afford NOT to give your kids and teens an allowance. Choose whatever amount your family can afford and open the conversation about spending, saving and sharing.

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Do you have your own Success Story?  If so, I’d like to feature you in a future “Success Story” posting.

Tell me what you have done to help your kids and teens become financially responsible. I am interested in all your stories. It can be a small story or an amazing experience. Leave a comment to this post with your story and I will incorporate it into a future post. If you want to be interviewed – let me know how to contact you (I will not post your personal info).