Money Matters

I began giving the boys an allowance in June of this year. Prior to that time, I had not given the topic much (if any) thought. Before I instituted an allowance policy for the first time I wanted to give it some thought. I knew that no matter how I structured the allowance, one, or both boys, could/would cry foul. Plus, there are important concepts rolled up with the allowance which could teach the boys lessons about spending, saving and money management. So I did not want to be hasty. After thinking about it and discussing it with others, I made my decision. I gathered the boys to give them the good news. I explained that I was going to start giving them a monthly allowance. I have to admit that I expected the boys would be enthusiastic at this point. They were not. It is not that they were particularly unenthusiastic about it either though. I think perhaps they were awaiting further details before they let themselves feel excited. So I gave them more details. I explained that the allowance would be based on their age, but would be capped at age 10, so it would not grow beyond what I thought was reasonable. Spencer thought that was unfair because Michael would get more money than he would. Michael thought it was unfair because Spencer would begin getting an allowance when he was only five years old, whereas Michael's allowance was not going to start until Michael was eight years old. There is no pleasing everyone. I plowed ahead. I reminded them that they would need to continue to do the jobs around the house that we had previously established. No problem. Well, a little problem. According to Michael, Spencer is not always good about doing all of his jobs. Hmmm. Spencer agreed to be better. I discussed the importance of savings. Apparently I need not have talked about that at all. The boys informed me exasperatedly that they already know how important it is to save. Super. I told them that I would be putting half of their allowance directly into their savings accounts every month. We then talked about charitable giving and that I would be putting aside an additional ten percent of their monthly allowance. No problems there either. In fact, Michael immediately opted to increase the amount to twenty percent because that would be better for helping people. And so it was done. The boys received their portion of the allowance each month - 30% for Michael, 40% for Spencer. They did not spend it frivolously. Both boys have purchased a couple books. Michael bought his MP3 player. But mostly they have saved their money. They enjoy counting it. At the end of August Michael received a cash gift for his birthday. This inspired Spencer. He began depositing 100% of his allowance into his savings account, as well as any other money he receives. He may be a little competitive. However, that competitive spirit has been good for Spencer's bank account and now Jon thinks it may be time to talk to Spencer about investing.