Some changes have come and are continuing to come to the Thrifty Image household. And that’s a good thing! How boring would it be if everything were to stay to same?
One change? My little one is not so little anymore. She turned 13 last week! THIRTEEN! She is growing into a lovely, smart, frisky and expensive young lady. Who am I kidding? She has always been expensive. Kids bring their own set of fiscal allocations plus, she eats more than any kid I have personally known! I have had the pleasure of learning to cook for her very healthy appetite and we are both healthy and better for it!
And with that change to THIRTEEN, comes an allowance or Change (with a capital C).
Just a random insert – whenever I think of allowance, I think of these awesome and somewhat dated but moral of the story relevant videos:
My kiddo knew this was the year we were planning to start giving her an allowance. I was very clear with her, she needed to prove she could handle it. No falling down on the job, so to speak. No forgetting chores…no school work issues…Well, she was ready!
I had to get ready, too. What would go in order to add an Allowance line item to the budget? How and when would she be paid? What would the expectations be? Total freedom with ‘her’ money? Financial lessons on giving?
Well, I thought the best thing to do was to teach her how I spend my salary and how I manage my income. I created a simple budget that showed her my salary in yearly, monthly and weekly amounts.
I then broke down the taxes and tax sheltered deductions giving the net amounts. I also shared with her how I broke down the take home pay into church giving, non-variable (mortgage, savings, insurance and gasoline) and variable (food, pet expenses and power) amounts.
I shared with her my money goals and my money woes. Yep, laid it all right there on the coffee table. She wasn’t exactly surprised. She has ask me my salary before and she knows that it costs to live so, not really a huge reveal. That was to come…
Then I revealed her budget. A Whopping $20 per month! or $10 every 2 weeks! or $5 per week! 20 crisp dollar bills also laid out on the coffee table.
I let it be her choice when she received he allowance and she chose weekly. That proves she’s a smart cookie because in all my planning, I totally forgot about the months with the extra week. If she had gone with monthly, she would have lost out on $10 for the year.
Her budget looks like this:
- $5 per week
- Church giving $1 per week
- Long term savings $1 per week
I shared with her that she should consider her savings ‘gone’ and that she could save even more if she wanted to but $1 was the minimum. She says she wants to be an aggressive saver so, we will see.
I am excited to see this next chapter in her life. I am hopeful that she accepts this opportunity to become a smart money manager, frugal and a strong saver. I am very hopeful she doesn’t just by cheap crap and junk food.
I don’t have a fully thought out plan on raises yet but I will get there. It took me a long time to decide on the $20 per month. I wanted it to be high enough to ‘mean’ something to her but not so much that it would be a distraction or something that she brags about.
She said “thank you” when I gave it to her so maybe it was the right amount after all.