Updated: March 19, 2021
Originally Published: June 16, 2014
Read about the first part of the $100 allowance here.
Sweetest words a parent can hear: “Mom, I want underwear for my birthday!” I chuckled, thinking she was joking, but she was dead serious.
A year prior, when she entered eighth grade, my 13-year-old daughter proposed a flat allowance of $100 for the entire school year. She claimed this hefty sum would cover all her needs. Giddily, she drafted the contract, and after some back-and-forth, we all signed it.
For eight blissful weeks, she felt rich, but then the reality of her finances hit hard and the next eight months were a lesson in budgeting. However, those months were not without their silver linings. Here’s what she discovered:
- Entrepreneurial Spirit: My daughter became resourceful. She eagerly accepted babysitting gigs and hunted for opportunities to earn extra cash.
- Ingenuity: Instead of costly outings with friends, she embraced free activities. During the holidays, she made homemade gifts or opted for thrift store finds, which turned out to be just as cherished.
- Thriftiness: She decided against purchasing a yearbook due to its price and began bringing her meals on sports trips rather than buying fast food. She even hesitated to join her eighth-grade trip to New York City for fear of depleting her funds. Ultimately, she babysat alongside me for the weekend, allowing us both to earn the trip, though only she enjoyed the bus ride with her classmates. Despite having little spending money, she avoided junk food and, thankfully, we didn’t end up with cheap plastic souvenirs—just wonderful memories.
- Self-reliance: Thrilled to manage her own money, my daughter exhibited newfound confidence. Earning that trip was challenging, and at times, she asked me to leave so she could take charge. I found that impressive.
- Appreciation: The change was noticeable. Every time I bought her something—be it her favorite soup or running shoes for Christmas—she was genuinely excited. Previously, these would have been gifts I’d buy without a second thought, but now her ownership of the decision made them special.
- Harmony: Our typical clothing debates vanished. While shopping, she no longer begged for overpriced items or sulked when denied. Instead, we enjoyed discussing purchases together; occasionally, she still tests my resolve with pleas of “I’ll pay you back!” but my husband reminds me to “stay strong.”
- Budgeting Skills: While “Queen” might be a stretch, she does maintain a ledger, tracking income and expenses. She allocates 10% to charity, 20% to her college savings, and keeps 70% for herself. Websites like The Mint provide great tools to help families manage finances.
As she transitioned to high school, her allowance increased, yet we still contributed towards essentials like her iPad and sports fees. There are costs, such as team sweatshirts, that we share, but the peace and gratitude have improved in our household. When she needs or desires something, she now asks politely.
The lovely dress and matching shoes she bought for a semi-formal event consumed her entire savings, but it was a worthwhile investment for her—a testament to her decision-making. This weekend, she’s babysitting again after a busy week, and she’s even lined up a summer job to meet her financial goals. Sometimes, I worry she’s taking on too much responsibility for a 14-year-old, when she should be enjoying a carefree summer filled with sports camps. But perhaps this concern reflects the peculiar anxieties of American motherhood?
Our family life is rarely flawless. We continually adjust our routines and systems. However, the success of the $100 allowance stems from one fundamental element: my daughter initiated the idea and fully embraced it, investing in her own journey.
P.S. Yes, she did receive that underwear for her birthday, and she was delighted!
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Summary
This piece reflects on the transformative experience of a $100 annual allowance for a teenage daughter, highlighting the valuable lessons of responsibility, creativity, and self-reliance she gained over the year. The journey not only improved her financial literacy but also strengthened the parent-child relationship through newfound appreciation and reduced conflicts.