Updated: March 19, 2021
Originally Published: June 16, 2014
Read The $100 Allowance, Part I here.
Few phrases bring more joy to a parent than, “Mom, can I get some underwear for my birthday?” When I chuckled, she insisted, “I mean it!” And she truly did.
A year prior, my 13-year-old daughter, upon starting eighth grade, proposed an annual allowance of $100. She confidently declared that this substantial sum would cover all her expenses for the school year. After drafting the agreement herself and discussing it thoroughly, both she and I signed, sealing the deal.
She felt wealthy for a mere eight weeks before facing eight months of financial struggle. Surprisingly, those months proved to be incredibly beneficial.
Here are the valuable lessons she learned:
- Work Ethic: My daughter became proactive about finding work. She eagerly accepted babysitting jobs and constantly sought new opportunities.
- Inventiveness: Instead of opting for costly outings with friends, she creatively chose free activities. Around the holidays, she handcrafted gifts or shopped second-hand, and we cherished them just as much, if not more.
- Financial Savvy: Faced with limited funds, she decided against a yearbook due to its price. She also opted to skip fast food on school trips, preferring home-cooked meals. When the opportunity arose for an eighth-grade trip to New York City, she hesitated, fearing it would deplete her savings. Ultimately, she babysat with me throughout the weekend, earning her own trip. Although she brought minimal spending money, this decision helped her avoid junk food and unnecessary souvenirs, leading to unforgettable memories.
- Self-Reliance: Thrilled to manage her own finances, my daughter’s confidence soared. Earning the trip to New York was challenging, yet she often requested that I leave her alone to “take charge” and “earn her own trip.” I found that admirable.
- Appreciation: The shift was immediate. Whenever I bought her something, even a simple favorite soup, she expressed genuine excitement. For Christmas, she wished for running shoes and tall brown boots, two items I would typically purchase. However, with her newfound responsibility, she was overjoyed on Christmas morning.
- Harmony: Arguments over clothing disappeared. No longer did she plead for trendy dresses or accessories. Occasionally, she’d tease about how great I’d look in a top she wanted, but the debates and disappointments vanished, making our shopping trips enjoyable. Sure, she still tests my resolve occasionally with, “Please, Mom, I’ll pay you back!” But my husband often reminds me, “Stay strong.”
- Budget Management: While “Queen” may be a stretch, she does maintain a ledger. She tracks her income and expenses, allocating 10% to charity, 20% toward college savings, and retaining 70% for her personal use. Resources like www.themint.org help kids and parents manage their finances.
As she transitioned to high school, her allowance increased, yet we still assist with necessary expenses like an iPad and athletic fees. Though she can’t cover everything herself, the balance of gratitude and peace remains. When she needs something, her requests are respectful rather than demanding.
Recently, she splurged on a lovely dress and matching shoes for a semi-formal event, using up her hard-earned cash— a decision that truly mattered to her. This weekend, she’s babysitting after a busy week of school and sports, and she’s even secured a summer job to earn extra money. I sometimes worry that she may be taking on too much responsibility at just 14, while she might prefer more leisure time like summer camps. But is this simply the odd concern of an American mother?
Our family dynamics are often chaotic, with routines that change frequently. Yet, the $100 allowance was effective for two main reasons: it was my daughter’s idea, and she was fully committed to it. Literally.
P.S. Yes, she did receive that underwear for her birthday, and she was delighted.